NEW YORK TREASURY PRICES ENDED MODERATELY HIGHER YESTERDAY WITH LONGTERM SECURITIES SHOWING THE BIGGEST GAINS AS INVESTORS SHOOK OFF LOSSES FROM FRIDAY AND BEGAN TO FOCUS ON COMING INFLATION REPORTS INFLATION IS OF GREAT CONCERN TO HOLDERS OF FIXEDINCOME INVESTMENTS BECAUSE IT ERODES RETURNS FROM THOSE SECURITIES THE BENCHMARK 30YEAR TREASURY BOND ROSE NEARLY 1/2 POINT OR NEARLY 5 FOR A BOND WITH A 1000 FACE VALUE TO 103 3/32 ITS YIELD WHICH MOVES LOWER AS ITS PRICE MOVES HIGHER FELL TO 687 FROM 691 THE 10YEAR NOTE MEANWHILE ROSE LESS THAN 1/4 POINT TO 101 10/32 TO YIELD 606 DOWN FROM 609 MUCH OF YESTERDAY'S PRICE GAINS WERE AN ADJUSTMENT TO FRIDAY'S PERFORMANCE WHEN BOND PRICES TUMBLED ON NEWS THAT THE NATION'S PAYROLLS GREW AT A HEALTHIER PACE IN MAY THAN HAD BEEN SEEN SINCE BEFORE THE STARF THE LAST RECESSION YESTERDAY MORNING SOME TRADERS DECIDED TO COVER SHORT SALES THOSE ARE POSITIONS IN WHICH TRADERS SELL BORROWED SECURITIES ON A BET THAT THE MARKET WILL DROP HOPING TO REPLACE THE SECURITIES AT THE LOWER PRICES AND POCKET THE DIFFERENCE BUT THAT ACTIVITY WAS SHORTLIVED AND NOT WIDESPREAD BY ANY MEANS TRADERS SAID ALSO SUPPORTING THE MARKET WAS BUYING RELATED TO MUNICIPAL DEFEASANCE PROGRAMS WITH STATES BEGINNING TO SELL AN EXPECTED 3 BILLION OF NEW ISSUES THIS WEEK MUNICIPALITIES DEFEASE WHEN THEY SELL NEW DEBT IN ORDER TO RETIRE OLDER HIGHERYIELDING DEBT BEFORE PROCEEDS CAN BE USED TO PAY OFF THE OLD DEBT THE MONEY IS OFTEN INVESTED IN TREASURYS SUCH BUYING HAS BEEN COMMON IN THE PAST SEVERAL WEEKS WITH LITTLE IN THE WAY OF NEWS YESTERDAY INVESTORS WERE ABLE TO FOCUS MORE ON COMING INFLATION REPORTS OVER THE FIRST FOUR MONTHS OF THIS YEAR HIGHERTHANEXPECTED PRICE INCREASES HAVE RATTLED THE BOND MARKETS REPORTS THAT THE FEDERAL RESERVE MOVED TO FAVOR A BIAS TOWARD HIGHER SHORTTERM INTEREST RATES HAVE HELPED BOOST INTEREST RATES OF SHORTERTERM TREASURYS IN RECENT WEEKS AT THE SAME TIME THESE REPORTS HAVE ENCOURAGED SOME OWNERS OF LONGERTERM TREASURYS SUCH AS 30YEAR BONDS WHOSE PRICES WOULD STAND TO RISE IN REACTION TO THE FED'S INFLATIONFIGHTING RESOLVE THE NEXT BIG HAND TO BE DEALT LIKELY WILL COME FRIDAY IN THE FORM OF THE GOVERNMENT'S REPORT ON PRODUCER PRICES THAT REPORT THE PRODUCER PRICE INDEX GIVES THE MARKET WHAT IT MOST CRAVES NEWS ON INFLATION AND EARLY NEXT WEEK A REPORT ON CONSUMER PRICES IS SLATED TO BE RELEASED UNTIL FRIDAY THEN NEITHER INVESTORS NOR TRADERS ARE LIKELY TO MAKE BIG LONGTERM BETS ON THE MARKET YOU JUST WATCH BOND PRICE CHARTS AND TRY TO DAY TRADE SAID GIB CLARK SENIOR VICE PRESIDENT OF GOVERNMENT TRADING AT DAIWA SECURITIES AMERICA INC IN REFERENCE TO THE PRACTICE OF MAKING TRADES THAT CLOSE THE SAME DAY THEY ARE STARTED CUSTOMERWISE IT'S NOT BEEN TOO HARD BECAUSE THERE'S NOT MUCH CUSTOMER INTEREST TO WORRY ABOUT HE SAID INDEED MANY BIG INVESTORS HAVE ALREADY SQUARED THEIR POSITIONS AND ARE WAITING FOR THE INFLATION REPORTS POINTS OUT JIM HO CHIEF FIXEDINCOME OFFICER AT JOHN HANCOCK ADVISERS THE BOSTONBASED ADVISERS TO THE JOHN HANCOCK MUTUAL FUND GROUP MANY OF THOSE TREASURY PLAYERS FEEL THAT ANOTHER REPORT SHOWING RISING INFLATION AFTER A LARGERTHANEXPECTED GAIN IN EMPLOYMENT COULD SEND THE MARKET INTO A SUBSTANTIAL DOWNTURN OF EVEN MORE CONCERN IS THE FEAR THAT REPORTS OF RISING PRODUCER AND CONSUMER PRICES WOULD PROMPT THE FED TO RAISE SHORTTERM RATES IN AN EFFORT TO COMBAT HIGHER INFLATION BUT WHILE TREASURY PRICES ARE TRADING IN NARROW RANGES OTHER FIXEDINCOME SECURITIES MAY BECOME MORE ATTRACTIVE AND ALLOW THE MONEY MANAGERS AND OTHER INVESTORS THE CHANCE TO SHIFT THEIR FOCUS IF NOT THEIR ALLOCATIONS WE'RE GOING TO SEE SOME NEW ISSUES IN THE NEXT FEW DAYS IN THE CORPORATE MARKET AND WE'LL SEE SOME ACTIVITY THERE SAID MR HO OF JOHN HANCOCK A SLOW PERIOD IN THE TREASURY MARKET IS OFTEN A GOOD TIME FOR INSTITUTIONAL INVESTORS TO CONCENTRATE ON THE OTHER SECTORS OF THEIR FIXEDINCOME PORTFOLIOS ACCORDING TO MR HO AND OTHER MONEY MANAGERS MEANWHILE YESTERDAY THE TREASURY SOLD 2409 BILLION OF THREEMONTH AND SIXMONTH BILLS AT ITS REGULAR WEEKLY AUCTION THE THREEMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 314 FOR A COUPONEQUIVALENT YIELD OF 321 THE SIXMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 330 FOR A COUPONEQUIVALENT YIELD OF 340 HERE ARE THE RESULTS OF THE AUCTION RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED JUNE 10 THE 13WEEK BILLS MATURE SEP 9 1993 AND THE 26WEEK BILLS MATURE DEC 9 1993 PRICES OF CORPORATE BONDS ENDED HIGHER IN GENERALLY LACKLUSTER TRADING ACTIVITY YESTERDAY WHILE SPREADS BETWEEN CORPORATE BOND YIELDS AND COMPARABLE TREASURYS DIDN'T BUDGE FROM LEVELS SEEN FRIDAY MOST INVESTMENTGRADE ISSUES ENDED FLAT TO 1/4 POINT HIGHER REGAINING A LITTLE OF THE GROUND LOST FRIDAY AFTER THE SURPRISINGLY STRONG MAY JOBS REPORT JUNK BONDS GAINED 1/8 POINT IN MOREACTIVE SECONDARY MARKET ACTIVITY THE FIRM TONE WAS REASSURING TO SOME JUNK BOND TRADERS BECAUSE SECONDARY TRADING HAS BEEN LISTLESS LATELY WHILE INVESTORS PORE OVER PROSPECTUSES FOR THE DOZEN OR SO NEW ISSUES DUE IN THE NEXT TWO WEEKS JUST THIS WEEK ALONE SEVEN NEW JUNK DEALS TOTALING 1 BILLION ARE EXPECTED AMONG THE COMPANIES LINING UP ARE AES CORP COMPUSA INC AND TRUMP PLAZA FUNDING INC MEANWHILE INTEREST RATES DECLINED WHICH ENCOURAGED A NUMBER OF UTILITIES TO TAP THE NEWISSUE MARKET CONSOLIDATED EDISON CO NEW YORK WEIGHED IN WITH A 380 MILLION ISSUE OF 30YEAR DEBENTURES WHILE SOUTHERN CALIFORNIA EDISON CO A UNIT OF SCECORP ACCEPTED BIDS ON A 275 MILLION TWOPART OFFERING OF FIRST AND REFUNDING MORTGAGE BONDS HOWEVER WITH THE COMING INFLATION REPORTS INVESTORS MAY NEED TO BE GIVEN ADDITIONAL CONCESSIONS TO BUY BONDS THIS WEEK SYNDICATE OFFICIALS SAID THE MOST NOTEWORTHY SALE EXPECTED THIS WEEK WILL BE INTERNATIONAL BUSINESS MACHINES CORP'S 15 BILLION TWOPART OFFERING OF BONDS THROUGH DEALERS LED BY MORGAN STANLEY & CO THE OFFERING WILL CONSIST OF 1 BILLION OF SEVENYEAR BONDS AND 500 MILLION OF 20YEAR BONDS AN UNDERWRITING OFFICIAL AT MORGAN STANLEY SAID NO OTHER COMANAGERS WERE NAMED BOTH CLASSES ARE EXPECTED TO BE NONCALLABLE IBM'S OUTSTANDING DEBT IS RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP MORGAN STANLEY HAS NOT YET ANNOUNCED OFFICIAL PRICE TALK BUT THAT'S NOT ENOUGH TO STOP INVESTORS AND TRADERS FROM SPECULATING ABOUT POSSIBLE PRICE LEVELS SOME BELIEVE BOTH CLASSES WILL BE PRICED WITH YIELDS ROUGHLY 060 PERCENTAGE POINT ABOVE COMPARABLE TREASURYS THAT WOULD TRANSLATE INTO A YIELD OF ABOUT 628 FOR THE SEVENYEAR PIECE AND 747 FOR THE 20YEAR ISSUE WHICH WILL BE PRICED OFF THE TREASURY 30YEAR BOND BUT SOME INVESTORS BELIEVE THAT THE LONGERDATED PIECE WILL HAVE TO FALL IN PRICE TO MAKE IT MORE ATTRACTIVE PARTICULARLY WITH IMPORTANT CONSUMER AND PRODUCER INFLATION DATA AROUND THE CORNER PRICES OF MUNICIPAL BONDS ENDED GENERALLY STEADY TO 1/4 POINT HIGHER AFTER A QUIET SESSION IN SECONDARY TRADING NEW YORK CITY HEALTH & HOSPITALS CORP'S 5625 HEALTH SYSTEM BONDS OF 2013 FINISHED 1/8 HIGHER AT 99 1/8 TO YIELD 568 THE NOTES WHICH ARE DUE JULY 29 1994 HAVE A 325 COUPON AND WERE PRICED TO YIELD 280 AT THEIR MATURITY THEY HAVE BEEN RATED MIG1 BY MOODY'S TODAY QUITE A BIT MORE CALIFORNIA PAPER WILL FLOW INTO THE MARKET AMONG THE ISSUERS IN THAT STATE SLATED TO SELL SECURITIES ARE THE UNIVERSITY OF CALIFORNIA REGENTS SANTA CLARA COUNTY AND CONTRA COSTA COUNTY SEPARATELY MOODY'S SAID IT HAS GIVEN CAPITAL GUARANTY INSURANCE CO A TRIPLEA CLAIMSPAYING RATING THE COMPANY WHICH MAINLY INSURES MUNICIPAL BONDS BEGAN OPERATIONS IN NOVEMBER 1986 IT IS A WHOLLY OWNED SUBSIDIARY OF CAPITAL GUARANTY CORP AND IS LICENSED TO UNDERWRITE BUSINESS IN 49 STATES AND PUERTO RICO GUAM AND THE VIRGIN ISLANDS AN APPLICATION IS PENDING IN NEW HAMPSHIRE ACTIVE MORTGAGE ISSUES POSTED ONLY SLIGHT GAINS AMID THIN TRADING DESPITE ENCOURAGING PREPAYMENT NEWS FROM THE FEDERAL NATIONAL MORTGAGE ASSOCIATION AND THE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION MAY PREPAYMENT SPEEDS REPORTED BY THE AGENCIES INDICATED MORTGAGES ARE CONTINUING TO PREPAY AT FAST SPEEDS BUT HINTED THAT THE RAPID ACCELERATION OF PAST MONTHS IS WANING WE'RE SEEING THE FIRST CLEAR EVIDENCE OF REACHING THE PEAK IN THE CYCLE SAID ANDREW CARRON A MORTGAGE ANALYST AT FIRST BOSTON CORP MR CARRON BELIEVES THE EVIDENCE WILL GIVE WARY INVESTORS A REASON TO GET BACK INTO THE MARKET ALTHOUGH MANY MAY REMAIN SIDELINED UNTIL JUNE NUMBERS ARE REPORTED SECONDARY TRADING YESTERDAY CONFIRMED MR CARRON'S VIEW THERE WAS SOME SELLING BY MORTGAGE BANKERS IN THE MORNING BUT RETAIL INVESTORS WERE NOT SEEN CURRENT COUPON SECURITIES FOR JUNE DELIVERY FINISHED 3/32 TO 5/32 HIGHER IN THE PRIMARY MARKET FANNIE MAE ANNOUNCED SIX REAL ESTATE MORTGAGE INVESTMENT CONDUITS TOTALING 229 BILLION MEANWHILE ASSETBACKED MARKET PARTICIPANTS AWAIT A 1 BILLION TWOPART CREDITCARD ISSUE FROM FIRST DEPOSIT NATIONAL BANK THAT WILL CONTAIN EAGERLY SOUGHT FIXEDRATE SECURITIES FIRST DEPOSIT IS BASED IN TILTON NH 9306080106 930608 PRATT UNION REACH ACCORD TO SAVE JOBS BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL PRATT & WHITNEY AND THE INTERNATIONAL ASSOCIATION OF MACHINISTS REACHED A TENTATIVE AGREEMENT DESIGNED TO SAVE JOBS IN CONNECTICUT THAT PRATT & WHITNEY HAD PLANNED TO ELIMINATE THE UNION AGREEMENT COMES ON THE HEELS OF A TENTATIVE PACT REACHED FRIDAY BETWEEN STATE OFFICIALS AND THE JETENGINE MAKER THAT AGREEMENT WILL PROVIDE PRATT & WHITNEY WITH A 32 MILLION TAX PACKAGE PRATT & WHITNEY A UNIT OF UNITED TECHNOLOGIES CORP HARTFORD CONN HAD THREATENED TO ELIMINATE AS MANY AS 9000 JOBS BY THE END OF 1994 IF IT DIDN'T REACH AGREEMENTS WITH ITS UNION AND THE STATE WITH THE NEW AGREEMENT IT WILL ELIMINATE ONLY 6700 JOBS IN THAT TIME PROVIDED ITS WORK FORCE MEETS PRODUCTIVITY GOALS WE'LL RECOMMEND THAT THE UNION PASS THE AGREEMENT SAID ANDY ROMEGIALLI THE UNION'S REPRESENTATIVE BUT I'M SURE THAT IT'S GOING TO BE TOUGH FOR THE MEMBERSHIP TO VOTE FOR PRATT & WHITNEY EXPLAINED THAT A SAGGING AEROSPACE AND DEFENSE INDUSTRY HAS STUNG IT BADLY AND THAT ITS COSTS OF OPERATIONS IN CONNECTICUT HAVE BECOME QUITE EXPENSIVE COMPARED WITH ITS SMALLER MAINE AND GEORGIA FACILITIES TERMS OF THE TENTATIVE UNION AGREEMENT WHICH WILL BE VOTED ON EITHER JUNE 16 OR JUNE 23 INCLUDE A COMPANY COMMITMENT TO KEEP OPEN THE PLANTS IN EAST HARTFORD MIDDLETOWN NORTH HAVEN AND CHESHIRE THE COMPANY'S SOUTHINGTON PLANT WILL CLOSE THE COMPANY ALSO WILL MEET WITH UNION LEADERS TO DEVISE PRODUCTIVITY IMPROVEMENT PLANS AND METHODS TO RETURN TO PRATT & WHITNEY OUTSOURCED WORK FROM OTHER VENDORS BUT REGAINING WORK THAT HAS BEEN OUTSOURCED TO VENDORS WILL BE CONTINGENT ON COMPANY WORKERS' MEETING CERTAIN PRODUCTIVITY GOALS IF THOSE GOALS AREN'T MET UNION MEMBERS MAY BE FORCED TO TAKE WAGE CUTS OF 10 CENTS TO TWO DOLLARS AN HOUR OTHER ASPECTS OF THE TENTATIVE PACT INCLUDE NO RAISES OR COSTOFLIVING ADJUSTMENTS FOR THE REMAINDER OF THE CONTRACT AND GREATER EFFORTS TO LINK PRODUCTIVITY TO PAY THE CURRENT CONTRACT WHICH IS A MODIFIED VERSION OF AN AGREEMENT THAT HAS BEEN IN PLACE SINCE DEC 9 1991 WAS SET TO EXPIRE IN DECEMBER 1994 INSTEAD IT WILL EXPIRE IN DECEMBER 1995 THE COMPANY HAD SOUGHT AN EXTENSION TO THE END OF 1996 AND A WAGE CUT OF TWO DOLLARS AN HOUR 9306080105 930608 BUSINESS WORLD NOT ON LA'S BALLOT BUT MINDFUL OF ITS FUTURE BY TIM W FERGUSON AS LOS ANGELES ELECTS A NEW MAYOR TODAY THE CITY'S MOST FAMILIAR FACE TO THE WORLD FOR THE LAST YEAR OFFERS BOTH GOOD AND BAD NEWS ABOUT THE ECONOMY THE WINNER WILL INHERIT THE VISIBLE MAN IS PETER UEBERROTH APPOINTED BY THE OUTGOING AND INCREASINGLY INVISIBLE MAYOR TOM BRADLEY TO HEAD REBUILD LA AFTER LAST YEAR'S RIOT MR UEBERROTH RECENTLY QUIT THE POST TIRED OF BEING A LIGHTNING ROD FOR THE THUNDER CLOUDS THAT LINGER OVER THE NATION'S MOST DEPRESSED METROPOLIS THE FORMER OLYMPICS ORGANIZER AND BASEBALL COMMISSIONER AGREED TO AN INTERVIEW FOCUSED ON THE AREA'S FUTURE THE GOOD NEWS ACCORDING TO MR UEBERROTH IS A STIRRING OF BUSINESS ACTIVITY IN DISTRESSED AREAS OF THE LA BASIN THAT HE SAYS IS UNPRECEDENTED FOR A POSTRIOT ZONE INDEED HE CLAIMS IT IS THE FIRST MAJOR PRIVATESECTOR PRESENCE IN AN AMERICAN INNER CITY SINCE WORLD WAR II STATISTICS REFLECTING THIS GROWTH WON'T APPEAR UNTIL NEXT YEAR BUT HE SAYS THE CHANGE IS ALREADY EVIDENT IN RECONSTRUCTION OF ARSONDAMAGED BUILDINGS A CITY REPORT FINDS MORE THAN HALF HAVE BEEN FIXED MR UEBERROTH CREDITS THIS PERCEIVED RENAISSANCE TO A RECOGNITION BY RETAILERS THAT LOTS OF SALES WERE BEING CEDED TO THE GRAY MARKET THE RIOT IRONICALLY MAY HAVE DRAWN ATTENTION TO LATINO AND ASIAN INFLUXES THAT HAVE SWOLLEN THE CONSUMER POPULATION IN THE AFFECTED AREAS NOW THAT SEVERAL GROCERY AND AUTOSUPPLY OUTLETS HAVE BEEN REWARDED WITH STRONG PATRONAGE HE EXPECTS COMPETITORS TO FOLLOW PRICES WILL BE BID DOWN THE POOR WILL HAVE MORE MONEY LEFT FOR OTHER PURCHASES AND ENTREPRENEURIAL SHOPS WILL GROUP AROUND THE ANCHOR STORES THAT KEEP SHOPPERS CLOSE TO HOME AS MR UEBERROTH ADMITS IT'S BEEN SO BAD IT'S EASY TO GET BETTER BUT THE TREND NEEDS OFFICIAL ENCOURAGEMENT ACTIONS TO STEER THE PROFITMAKING SECTOR TO INVEST HIRE AND TRAIN IN THE INNER CITY FOR FIVE TO TEN YEARS IN ORDER TO PICK UP SPEED AND SPREAD HE SAYS WASHINGTON AND SACRAMENTO ARE CRITICAL TO THAT BUT HE COMPLAINS THE LOS ANGELES AREA HAS NO PROMINENT VOICE IN EITHER PLACE THOUGH THE STATE SENATE PRESIDENT HAILS FROM NEAR HOLLYWOOD THE NEW MAYOR MUST FILL THAT ROLE HE HASN'T ENDORSED EITHER INVESTOR RICHARD RIORDAN OR COUNCILMAN MICHAEL WOO LIKE MANY OTHERS MR UEBERROTH ALLEGES THAT CITY OFFICIALS HAVEN'T FULFILLED PROMISES TO HUSTLE PERMITGRANTING AFTER THE RIOT LOS ANGELES PROPER RETAINS A HOSTILE AND FEEHEAVY REGULATORY CLIMATE HE CONTRASTS THE ATTITUDE IN NEIGHBORING CITIES I'M GOING TO BE VERY INTERESTED IN SEEING INGLEWOOD'S AND COMPTON'S NUMBERS A YEAR FROM NOW VS LA'S HE SAYS OF TWO HEAVILYMINORITY MUNICIPALITIES WHOSE LEADERSHIP HE PREFERS THE FRUSTRATIONS OF FACING INTRANSIGENT BUREAUCRACIES AT CITY HALL AND IN THE US'S SECONDLARGEST SCHOOL DISTRICT HAVE SPURRED SECESSION TALK AND MR UEBERROTH IS SYMPATHETIC TO THE NOTION OF BREAKING THE CITY OF ANGELS INTO SMALLER PARTS WHEN YOU HAVE SOMETHING THAT'S VERY BIG IT'S HARDER TO CHANGE HE SAYS STILL DESPITE THE OBSTACLES MR UEBERROTH HERALDS REVIVAL IN POVERTYRIDDEN CENSUS TRACTS SURE ENOUGH THE AREAS OF REBUILD LA'S RESPONSIBILITY AS THE BEST TIDINGS IN TOWN EVEN IF LOCAL JOURNALISTS AREN'T BUYING THE STORY BUT HE DOESN'T HOLD OUT THIS CHEER FOR THE REST OF THE REGION HIS BAD NEWS IN FACT IS THAT UNHAPPY UNEMPLOYMENT NUMBERS FOR GREATER LA UNDERSTATE THE FIX IT'S IN FOR ONE THING MANY LAYOFFS OF THE LAST TWO YEARS CONTAINED SEVERANCE PAYMENTS THAT ARE GRADUALLY BEING EXHAUSTED SO WALLETS ARE LIKELY TO STAY STRETCHED EVEN AS THE JOBLESS ROLLS STABILIZE ALREADY THE SOUTHERN CALIFORNIA METRO AREA SHOWED AN OUTRIGHT DROP IN PERCAPITA INCOME BETWEEN 1990 AND 1991 WHILE THE US AVERAGE ROSE MR UEBERROTH POINTS TO A CHANGING EMPLOYMENT MIX WHERE WORK THAT PAID IN THE LOW20S AN HOUR IS REPLACED BY 7 TO 8ANHOUR JOBS PARTICULARLY AS BIG MILITARY CONTRACTORS SHRINK OR MOVE OPERATIONS THIS TOGETHER WITH A RELATED FALL IN REALESTATE VALUES IS COLLAPSING THE TAX BASE HE WARNS AND ENDANGERING PUBLIC SERVICES ESPECIALLY SCHOOLS POLICE FIRE HOSPITALS AND TRANSPORTATION THAT SUPPORT A HEALTHY ECONOMY ASSEMBLY POSITIONS ARE VANISHING IN ALL OF THE INDUSTRIALIZED NATIONS BUT MR UEBERROTH ARGUES LA IS UNUSUALLY TROUBLED EVEN WITHIN CALIFORNIA WHOSE COMPETITIVENESS PROBLEMS WERE THE SUBJECT OF A COMMISSION STUDY HEADED BY MR UEBERROTH BEFORE HE ASSUMED THE RIOTREBOUND DUTY LA'S SPOT IS THE ROUGHEST SAN FRANCISCO'S CIVIC WOES COMPARE IN SEVERITY BUT THE BAY AREA AS A WHOLE HAS A HEALTHIER MIX OF INDUSTRIES WE HAD AEROSPACE VALLEY IF YOU WILL SAYS HE CRITICS HAVE ACCUSED HIM IT SHOULD BE NOTED OF PAYING INSUFFICIENT ATTENTION TO GROWTH SECTORS IN FAVOR OF THE OLD LIONS OF BUSINESS MR UEBERROTH CITES AT LEAST TWO OTHER STRIKES AGAINST LOS ANGELES IN ADDITION TO ITS VACUUM AT THE TOP ONE IS ITS POPULATION SURGE OVER THE LAST DECADE THE REST OF THE STATE IS JUST MORE MANAGEABLE AND ANOTHER IS THE POLITICAL DOMINANCE OF WEST LA HOME TO MANY INDEPENDENT PROFESSIONALS AND ENTERTAINMENTINDUSTRY FIGURES WHO DON'T HAVE AN IMMEDIATE STAKE IN THE WELFARE OF MAJOR EMPLOYERS AND THEREFORE COUNTENANCE ANTIBUSINESS POLICIES CALIFORNIA IS THE MOST EXPENSIVE STATE FOR LITIGATION EXECUTIVES TELL HIM ONE MAJOR OIL COMPANY SAID IT SPENDS MORE ON REGULATORY COMPLIANCE THAN ON PAYROLL INDUSTRY HE GRIPES IS EXPECTED TO TAKE COSTLY STEPS TOWARD AN ULTIMATE DEGREE OF SAFETY OR CLEANLINESS THAT EVEN A PRIG WOULD NEVER ASSUME ON HIS OWN THAT ALL HELPS TO EXPLAIN WHY VIABLE CONCERNS MAY KEEP A LOS ANGELESAREA HEADQUARTERS BUT GO OUTSIDE TO EXPAND THEIR PLANTS A PHENOMENON MR UEBERROTH BLAMES ABOVE ALL FOR A SCARCITY OF GOOD JOBS HE SAYS HE'S ENCOURAGED THAT SOME POWERFUL DEMOCRATS IN THE LEGISLATURE ARE FINALLY TAKING THESE MATTERS TO HEART AT THE END OF A 90MINUTE CONVERSATION ONE IS STRUCK BY HOW OFTEN THIS MAN WHO WAS SAID TO BE PRIVATIZING PUBLIC POLICY IN HIS ROLE AT REBUILD HAS HIS MIND ON GOVERNMENT WHAT IT IS DOING WRONG OR FAILING TO DO OF COURSE HE'S JUST WATCHED THE LA CITY COUNCIL FIDDLING OVER A SMOKING BAN IN RESTAURANTS ALTHOUGH HE AVOIDS NAMES MR UEBERROTH REPEATEDLY SHOWS VEXATION WITH RANKING OFFICIALS INCLUDING THOSE HE HAS SERVED HE SAYS HE WANTS TO REMAIN A POLITICAL PIVOT NOTWITHSTANDING THE POUNDING HE TOOK AT REBUILD THOUGH HE SAYS THAT CAN BE DONE WITHOUT HOLDING ELECTIVE OFFICE HE REFERS INTERESTINGLY TO HOWARD JARVIS THE LATE ANTITAX CRUSADER THIS SELFSTYLED CALIFORNIA CATALYST BLUSTERS A BIT HIMSELF WHEN CONCLUDING OF ALL WHO FACE THE VOTERS THEY MUST BEGIN TO REALIZE NOW IF THEY DON'T BRING ABOUT CHANGE AND WRAP THEMSELVES IN SOME SUBSTANTIVE CHANGE THEY'RE NOT GOING TO BE AROUND NO MATTER WHO THEY ARE OR HOW LONG THEY'VE BEEN THERE 9306080104 930608 SOUTHWEST AIR'S TRAFFIC IN MAY DALLAS SOUTHWEST AIRLINES SAID ITS MAY TRAFFIC INCREASED 23 TO 140 BILLION REVENUE PASSENGER MILES FROM 114 BILLION A YEAR AGO A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE MAY'S LOAD FACTOR OR PERCENTAGE OF SEATS FILLED WAS 684 COMPARED WITH 676 A YEAR EARLIER FOR THE FIRST FIVE MONTHS OF 1993 SOUTHWEST SAID IT FLEW 642 BILLION REVENUE PASSENGER MILES UP 197 FROM LAST YEAR'S 536 BILLION LOAD FACTOR FOR THAT PERIOD WAS 662 UP SLIGHTLY FROM LAST YEAR'S 647 9306080102 930608 MARKETING & MEDIA MARKETSCAN LOW ORANGE PRICES SLICE INTO SALES OF FROZEN JUICE BY KATHLEEN DEVENY FROZEN ORANGE JUICE SALES ARE GETTING SQUEEZED AND BARGAINHUNTING CONSUMERS ARE BENEFITING PLUMMETING ORANGE PRICES AND INTENSE PRICE COMPETITION HAVE HELPED TURN FROZEN CONCENTRATED ORANGE JUICE INTO ONE OF THE CATEGORIES WITH THE FASTESTDECLINING DOLLAR SALES IN THE SUPERMARKET TODAY SALES OF THE FROZEN JUICES DROPPED 12 TO 2219 MILLION IN THE 13 WEEKS ENDED MARCH 28 ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE DOLLAR SALES OF EVERY MAJOR BRAND IN THE CATEGORY DROPPED DURING THE QUARTER SALES OF COCACOLA CO'S MINUTE MAID BY FAR THE BESTSELLING FROZEN BRAND SANK 6 TO 739 MILLION SEAGRAM CO'S TROPICANA BRAND FARED WORSE WITH SALES DOWN 19 TO 228 MILLION EVEN SALES OF STOREBRAND JUICES DROPPED 5 TO 947 MILLION BUT CRAIG BINKLEY CATEGORY MANAGER FOR ORANGE JUICE AT MINUTE MAID BLAMES THE DECLINE ON FALLING ORANGE COSTS RATHER THAN A SHIFT IN CONSUMER PREFERENCES A BUMPER CROP OF ORANGES IN FLORIDA LAST YEAR DROVE DOWN ORANGE PRICES AS JUICE MARKETERS' COSTS FELL THEY CUT PRICES BY AS MUCH AS 15 THAT WAS ENOUGH TO TEMPT SOME VALUEORIENTED CUSTOMERS UNIT VOLUME OF FROZEN JUICES ACTUALLY ROSE ABOUT 6 IN THE QUARTER RETAIL PRICES HAVE COME DOWN DRAMATICALLY AND CASE SALES HAVE GONE UP SAYS MR BINKLEY OUR PROFITS ARE UP BECAUSE OUR COSTS HAVE GONE DOWN THE LIST OF FASTESTDECLINING PRODUCTS COMPILED EXCLUSIVELY FOR THE WALL STREET JOURNAL IS BASED ON SCANNER DATA GATHERED FROM SUPERMARKETS EACH QUARTER CHICAGOBASED INFORMATION RESOURCES RANKS MORE THAN 290 CATEGORIES WITH ANNUAL SALES OF AT LEAST 100 MILLION BY PERCENTAGE CHANGE IN DOLLAR VOLUME FROM THE YEAREARLIER PERIOD THOUGH GROWTH OFTEN COMES FROM NEW PRODUCTS OR PUMPEDUP PROMOTIONAL BUDGETS SALES OF GROCERY PRODUCTS OFTEN DECLINE FOR A VARIETY OF REASONS A SKIMPY HARVEST OF ALASKAN SALMON LAST SUMMER PUSHED UP PRICES OF CANNED SALMON DURING THE QUARTER DRIVING CONSUMERS AWAY SALES OF THE CANNED FISH DROPPED 16 TO 451 MILLION WE OFTEN SEE BIG SWINGS YEAR TO YEAR IN THE AMOUNT OF SALMON THAT IS CAUGHT SAYS DANIEL MILEY DIRECTOR OF MARKETING FOR THE LEADING BUMBLE BEE BRAND THAT MEANS PEAKS AND VALLEYS IN SALES QUARTERLY SALES OF INSTANT COFFEE EXCLUDING DECAFFEINATED VARIETIES FELL 14 TO 1078 MILLION HURT BY DECLINING COFFEE CONSUMPTION AND CONSUMERS' GROWING PREFERENCE FOR MORE FLAVORFUL BREWS THE INSTANT BREWS WERE CONSIDERED AN EXTRAORDINARY TECHNOLOGY WHEN THEY WERE INTRODUCED IN 1939 BUT EVEN NESTLE SA MAKER OF THE LEADING TASTER'S CHOICE BRAND CONCEDES YOUNGER CONSUMERS OFTEN AREN'T IMPRESSED AND FROZEN JUICE CONCENTRATES WEREN'T THE ONLY PRODUCTS IN THE FREEZER CASE WITH A BIG DROP IN DOLLAR SALES HEALTH CONCERNS KEPT FROZEN PREPARED VEGETABLES AT THE TOP OF THE ROSTER OF FASTESTDECLINING CATEGORIES FOR THE THIRD CONSECUTIVE QUARTER SALES OF THE VEGGIES WHICH ARE TYPICALLY SLATHERED IN CREAM BUTTER OR CHEESE SAUCES PLUNGED 25 FROM A YEAR EARLIER TO 299 MILLION DOLLAR SALES OF FROZEN LEMONADE MEANWHILE FELL 13 IN THE QUARTER 9306080101 930608 WHO'S NEWS AMERICAN HOME PRODUCTS CORP AMERICAN HOME PRODUCTS CORP PHILADELPHIA ANDRES NEGROVILAR 53 WAS NAMED VICE PRESIDENT IN CHARGE OF THE NEWLY CREATED WOMEN'S HEALTH INSTITUTE OF WYETHAYERST LABORATORIES THE PHARMACEUTICAL DIVISION OF THIS NEW YORKBASED PROVIDER OF MEDICAL SUPPLIES DIAGNOSTIC EQUIPMENT AND FOOD PRODUCTS WYETHAYERST HAD SALES OF 46 BILLION IN 1992 ITS SALES OF CONTRACEPTIVES AND PREMARIN A HORMONEREPLACEMENT DRUG TOTALED 14 BILLION IN 1992 DR NEGROVILAR PREVIOUSLY WAS DIRECTOR OF CLINICAL RESEARCH PROGRAMS AT THE NATIONAL INSTITUTE OF ENVIRONMENTAL HEALTH SCIENCES AT THE NATIONAL INSTITUTES OF HEALTH IN RESEARCH TRIANGLE PARK NC 9306080100 930608 WHO'S NEWS ALEX BROWN INC ALEX BROWN INC BALTIMORE JOHN A FORDHAM 44 YEARS OLD WAS NAMED DIRECTOR OF EUROPEAN INVESTMENT BANKING AT ALEX BROWN & SONS INC A UNIT OF THIS SECURITIES FIRM MR FORDHAM WHOSE NEWLY CREATED POSITION IS BASED IN LONDON HAD BEEN A MANAGING DIRECTOR AND JOINT HEAD OF CORPORATE FINANCE AT LLOYDS MERCHANT BANK IN LONDON 9306080099 930608 LEISURE & ARTS THE MOBILE GUIDE ELLIS ISLAND WHERE THE NEW LIFE BEGAN BY HELEN DUDAR NEW YORK BETWEEN 1892 AND 1954 WHEN IT CEASED TO BE A PROCESSING CENTER FOR IMMIGRANTS ELLIS ISLAND WAS THE FIRST PATCH OF AMERICAN GROUND TROD BY 12 MILLION NEWCOMERS ONE OF THEM WAS MAX MASON A SMALLISH COMPACT JAUNTY GENTLEMAN WHO PASSED THROUGH 72 YEARS AGO ONE NIGHT RECENTLY HE WENT BACK FOR A MORE COMFORTABLE VISIT IT'S A LOT DIFFERENT NOW FOR STARTERS THE CROWD WAS SMALL AND WELLDRESSED AND EVERYONE SPOKE MAX MASON'S LANGUAGE ACTUALLY THE VISIT WAS SPONSORED BY THE LOWER EAST SIDE TENEMENT MUSEUM WHICH SINCE 1988 HAS BEEN STRUGGLING TO FIND A FEW MILLION DOLLARS TO FIX UP A BATTERED FIVESTORY BUILDING AT 97 ORCHARD STREET SOME DAY ITS SKIMPY FLATS WILL BE FULLYRESTORED REPLICAS OF THE DARK COLD SLUMS ITS TENANTS CALLED HOME THE MUSEUM IS THE BRAINCHILD OF RUTH ABRAM GRANDDAUGHTER OF JEWISH AND SCOTCHIRISH GRANDPARENTS DAUGHTER OF MORRIS ABRAM THE US AMBASSADOR TO THE EUROPEAN OFFICE OF THE UN AS SHE POINTS OUT WE CELEBRATE THE WILD WEST AND REVERE THE LOG CABINS OF OUR FRONTIER TOWNS BUT SELDOM PAUSE TO HONOR PLACES THAT WERE ONCE THE SWEATY CONGESTED HOMES OF A SUCCESSION OF BRAVE NEWCOMERS IMMIGRANTS FROM 25 COUNTRIES NOT EVERYBODY CARES TO REMEMBER LET'S FACE IT TENEMENTS DO NOT EMBODY THE ROMANCE OF LOG CABINS BUT MS ABRAM BELIEVES THEY ARE AN IMPORTANT PART OF OUR URBAN HISTORY AND MAX MASON IS ON HER SIDE THE MUSEUM BUILDING WAS ACTUALLY HIS FIRST HOME IN AMERICA 15 A MONTH PAID FOR EVERYTHING INCLUDING TWO HALLWAY TOILETS FOR THE FOUR FAMILIES ON EACH FLOOR AND THRIVING COLONIES OF RATS ROACHES AND BEDBUGS SO ON AN UNSEASONABLY CHILLY APRIL NIGHT MR MASON WHO IS NEARLY 81 AND HIS WIFE GRETA DROVE DOWN FROM ROCKLAND COUNTY AND WITH ABOUT 200 OTHER MUSEUM SUPPORTERS BOARDED THE FERRYBOAT MISS ELLIS ISLAND ALSO MAKING THE TRIP WAS A COMPANY OF YOUNG ACTORS WHO THROUGHOUT THE EVENING PERFORMED SKITS EXPRESSING THE FEARS AND JOYS OF NEW ARRIVALS SOME ORGANIZATIONS RAISE MONEY WITH DANCES AND GOURMET MEALS THE MUSEUM OFFERS AN EDUCATIONAL EXPERIENCE AND IMMIGRANT BEEF STEW AS THE FERRY HOVE TOWARD THE ISLAND MR MASON REMEMBERED THAT OTHER TIME HE WAS NEARLY NINE YEARS OLD WHEN THE SS KRONLAND REACHED NEW YORK ON A BALMY NIGHT ON MAY 10 1921 EVERY NEW ARRIVAL IS SUPPOSED TO HAVE THE FIRST SIGHT OF THE STATUE OF LIBERTY ENGRAVED IN HIS MEMORY WE CAME AT NIGHT WE LEFT AT NIGHT HE SAID I NEVER KNEW UNTIL LATER THAT IT EXISTED MR MASON TRAVELED WITH HIS MOTHER AN OLDER SISTER AND A YOUNGER BROTHER HE HAD SPENT HIS FIRST NINE YEARS IN THE SMALL UKRAINIAN TOWN OF GOLOVENEVSK WHERE THE STREETS WERE MUD AND WHERE NOT LONG BEFORE THE FAMILY HAD COWERED IN CELLARS FOR THREE DAYS WHILE A POGROM RAGED WHEN WE CAME UP WE SAW JEWISH BODIES ALL OVER THE STREETS HIS FATHER WAS NOT EVEN A MEMORY HE HAD LEFT FOR AMERICA IN 1913 AND THE ONLY IMAGE YOUNG MAX HAD WAS A PICTURE OF A STRANGER IN THE WHITE MILITARY UNIFORM WORN BY MEMBERS OF AN ARMY REGIMENT BAND MY MOTHER HE SAYS WAS A GENIUS A BEAUTIFUL WOMAN SHE KEPT THE FAMILY FED AND SHELTERED AS A HAIRDRESSER SHE USED TO WEAVE PERUKES AND SHE WOULD DRESS THE LADIES FOR BALLS AND COME BACK WITH STRANGE AND WONDERFUL FOODS WE HAD NEVER SEEN BEFORE WHEN WE STOLE OUT OF RUSSIA MOM AND ANOTHER LADY HIRED A WAGON AND SAID WE WERE GOING TO A WEDDING IN BESSARABIA ACTUALLY WE WERE CROSSING THE BORDER IT'S AS VIVID IN MY MIND AS IF IT HAPPENED YESTERDAY WE FOUND THE JEWISH AGENCY AND DON'T ASK ME BY WHAT DEVIOUS MEANS MOM ACQUIRED ROMANIAN CITIZENSHIP SO WE CAME IN UNDER THE ROMANIAN QUOTA THEY BOARDED A SLOW TRAIN TO BELGIUM THE CHILDREN SLEEPING IN OVERHEAD LUGGAGE RACKS AT NIGHT AND SAILED FROM ANTWERP ON HER EARNINGS HIS MOTHER WAS ABLE TO AFFORD SECONDCLASS INSTEAD OF STEERAGE MR MASON'S REMINISCENCES WERE INTERRUPTED BY THE ARRIVAL AT THE ISLAND THE FERRY DOCKED AT THE IMPRESSIVE BRICK BUILDING STEPPING OVER THE THRESHOLD HE FOUND HIMSELF IN AN ENORMOUS HALL WITH ELEGANT VAULTED CEILINGS OF COURSE ELLIS ISLAND IS NOW ALSO A MUSEUM AND THERE ARE SCATTERED EXHIBITS BUT THE FIRST AND LASTING IMPRESSION IS THE SENSE OF SPACE AND REASSURING QUIET BUT WHAT MR MASON REMEMBERS MOST IS PANICTERROR ALTERNATING WITH FEVERED EXCITEMENT OVER FINALLY HAVING REACHED AMERICA I'D NEVER SEEN SUCH A VAST SPACE OR SO MANY PEOPLE CROWDS SHOVING AND PUSHING AND THE NOISE HORDES OF PEOPLE SPEAKING LANGUAGES WE HAD NEVER HEARD AND CHILDREN CRYING AND CHILDREN GETTING LOST AND PEOPLE WORE PECULIAR CLOTHING I KNEW WE HAD TO SEE A DOCTOR THAT WE HAD TO BE APPROVED BY SOMEBODY THAT THERE WERE PEOPLE WHO COULD KEEP US OUT THE UNSPOKEN QUESTION WAS WOULD THEY LET YOU IN OR SEND YOUBACK AND THEN THERE WAS THE WORRY WOULD MY FATHER SHOW UP AS THEY WERE LED FROM ONE EXAMINING OFFICIAL TO ANOTHER IT SEEMED AS IF THEY WERE SPENDING AN ETERNITY WALKING UP AND DOWN STAIRS MOM CARRYING SUITCASES AND BUNDLES THE THREE OF US HANGING ON TO HER SKIRTS THE FAMILY NAME WAS UNPRONOUNCEABLE AS MR MASON LIKES TO SAY THE ADMITTING AUTHORITIES CIRCUMCISED IT RETAINING THE FIRST INITIAL AT LAST MOM AND CHILDREN WERE LED TO THE LETTER M TO BE FOUND BY MAX'S FATHER AND UNCLE NATHAN EACH OF WHOM JOYFULLY EMBRACED MAX ALTHOUGH THEY WERE STRANGERS THE NEXT DAY HE SAW HIS FIRST TRAIN RUNNING ON TRACKS ABOVE THE STREET AND ATE HIS FIRST BANANA IT CAUSED NAUSEA THE MASONS SETTLED ON ORCHARD STREET DENSE WITH PUSHCARTS AND THE DIN OF PEDDLERS HAWKING THEIR WARES ALL DAY MR MASON ALSO LIKES TO CLASSIFY HIS FATHER AS A GENIUS HE MADE MONEY OUT OF DIRT ACTUALLY HE WAS A LAUNDRYMAN AND THE WHOLE FAMILY WORKED IN THE BUSINESS NEW ARRIVALS OF MR MASON'S GENERATION MOST OFTEN FOUND AN OCCUPATION AS SMALL RETAILERS CANDY STORES AND GROCERIES BUT BY WORKING FULL TIME AND GOING TO SCHOOL NIGHTS FOR 12 YEARS MR MASON GOT A LAW DEGREE MARRIED FATHERED FOUR CHILDREN AND SET UP A PRACTICE IN ROCKLAND COUNTY WHERE HIS SHINGLE STILL HANGS IN THE TOWN OF SUFFERN WHEN THE TOUR AND THE SKITS WERE DONE MR MASON SAT DOWN TO DINNER WITH HIS FELLOW VISITORS HE MADE HIS WAY THROUGH THE BEEF STEW AND THE TSIMMES A JEWISHSTYLE AMALGAM OF SWEET POTATOES AND PRUNES AND SAID HE WAS GLAD HE HAD COME BACK TO SEE THE PLACE AGAIN MS DUDAR IS A NEW YORK FREELANCE WRITER 9306080098 930608 LETTERS TO THE EDITOR BOND DURATION MUST BE READJUSTED YOUR APRIL 19 MONEY MATTERS COLUMN ON BOND DURATION SAID THAT ANYONE WHO HOLDS A 6 COUPON 10YEAR TREASURY NOTE FOR 7 1/2 YEARS THE BOND'S CURRENT DURATION AND DILIGENTLY REINVESTS THE INTEREST PAYMENTS CAN EXPECT A TOTAL RETURN THAT'S ROUGHLY IN LINE WITH THE INITIAL 6 YIELD NO MATTER IF RATES RISE OR FALL THAT IS TRUE ONLY FOR A ONETIME CHANGE IN RATES A HIGHLY UNLIKELY SCENARIO FOR EXAMPLE IF RATES DECLINE BELOW 6 IMMEDIATELY AFTER BUYING THE BOND BECAUSE WE ARE IN A SLUGGISH ECONOMY THE COUPONS WILL BE REINVESTED AT LOWER RATES IF AFTER A FEW YEARS OF SLOW GROWTH THE ECONOMY RECOVERS AND RATES RISE ABOVE 6 THERE WOULD BE A CAPITAL LOSS TO COMPOUND THE PROBLEM TOTAL RETURN IN THAT CASE WOULD SURELY BE WELL BELOW 6 UNDER MOST CIRCUMSTANCES DURATION MUST BE CONTINUOUSLY ADJUSTED BY THE INVESTOR TO KEEP TOTAL RETURN CONSTANT 9306080097 930608 POLITICS & POLICY WHITE HOUSE PICKS GEARAN TO SUCCEED STEPHANOPOULOS WASHINGTON MARK GEARAN A DEPUTY CHIEF OF STAFF WHO WAS ALBERT GORE'S VICE PRESIDENTIAL CAMPAIGN MANAGER WAS NAMED WHITE HOUSE COMMUNICATIONS DIRECTOR SUCCEEDING GEORGE STEPHANOPOULOS MR GEARAN 36 REPORTS TO DAVID GERGEN THE NEW WHITE HOUSE COUNSELOR DEE DEE MYERS 31 RETAINS HER JOB AS PRESS SECRETARY AND WILL CONDUCT MOST NEWS BRIEFINGS MR STEPHANOPOULOS RECENTLY WAS SHIFTED TO A JOB AS SENIOR POLICY ADVISER THE MOVES WERE DESIGNED TO REPAIR DAMAGED RELATIONS WITH THE PRESS THE RELATIONSHIP BETWEEN THE WHITE HOUSE AND PRESS IS NOT ALL IT SHOULD BE MR GERGEN SAID WE'RE TURNING A NEW PAGE I THINK WE'VE ALL LEARNED A LOT OVER THE COURSE OF THE LAST SEVERAL MONTHS MS MYERS ADDED I HOPE WE CAN HAVE A LITTLE BIT OF FUN A FEW LAUGHS AND GOOD HUMOR MR GEARAN A FORMER PRESS SPOKESMAN FOR FORMER GOV MICHAEL DUKAKIS OF MASSASCHUSETTS BROUGHT SMILES TO THE WHITE HOUSE PRESS CORPS BY PARADING WITH HIS YEAROLD DAUGHTER MADELEINE 9306080096 930608 TECHNOLOGY FDA SAYS DRUG MADE BY CHIRON AND BERLEX MAY BE APPROVABLE' WASHINGTON FEDERAL REGULATORS SAID A GENETICALLYENGINEERED DRUG FOR TREATING MULTIPLE SCLEROSIS WAS APPROVABLE BUT SAID ITS MAKERS MUST STILL MEET CERTAIN CONDITIONS GENERALLY SUCH COMMENTS FROM THE FOOD AND DRUG ADMINISTRATION ARE CONSIDERED SIGNS THAT A DRUG IS MOVING CLOSER TO GAINING REGULATORY APPROVAL HOWEVER THE FDA DIDN'T SPECIFY THE CONDITIONS AND IT WASN'T CLEAR IF THE CONDITIONS WILL PRESENT PROBLEMS FOR MAKERS OF THE DRUG CHIRON CORP EMERYVILLE CALIF AND BERLEX LABORATORIES INC RICHMOND CALIF NEITHER COMPANY COULD BE REACHED TO COMMENT THE DRUG CALLED BETASERON IS CONSIDERED A POTENTIAL ADVANCE IN MS TREATMENTS INVESTOR ENTHUSIASM ABOUT BETASERON'S POTENTIAL HAS CONTRIBUTED TO A RECENT RUNUP IN CHIRON STOCK WHICH HAS JUMPED FROM ABOUT 48 A SHARE IN MARCH TO YESTERDAY'S CLOSING PRICE OF 5950 A SHARE DOWN 150 IN COMPOSITE OVERTHECOUNTER TRADING 9306080095 930608 POLITICS & POLICY BTU TAX IS DYING DEATH OF A THOUSAND CUTS AS LOBBYISTS SEEM ABLE TO WRITE OWN EXEMPTIONS BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IF YOU DON'T HAVE AN EXEMPTION FROM THE BTU TAX YET MAYBE YOU JUST AREN'T TRYING PRESIDENT CLINTON'S PROPOSED ENERGY TAX BEGAN AS A STRAIGHTFORWARD LEVY ON FUELS BASED LARGELY ON HEAT CONSUMPTION AS MEASURED IN BRITISH THERMAL UNITS BUT AS INDUSTRY AFTER INDUSTRY SECURES SPECIAL BREAKS THE RUSH FOR FURTHER EXEMPTIONS IS BECOMING A STAMPEDE THE FARM LOBBY HAVING ALREADY PERSUADED THE HOUSE TO LOWER THE BTU TAX ON DIESEL FUEL USED BY TRACTORS AND OTHER OFFROAD FARM EQUIPMENT IS NOW PRESSING TO EXEMPT SUCH FUEL USE FROM THE TAX ALTOGETHER MEANWHILE THE PETROLEUM INDUSTRY WHICH GOT THE ADMINISTRATION TO EXEMPT FROM THE TAX ALL SHIP AND JET FUEL USED IN INTERNATIONAL COMMERCIAL TRANSPORTATION IS NOW TRYING TO LOWER THE TAX RATE FOR RESIDUAL FUEL OIL AND PETROLEUM COKE TWO HEAVY OILS USED MAINLY TO FUEL BOILERS AND KILNS RESPECTIVELY INDEED THE CLAMOR FOR INDUSTRIAL EXEMPTIONS HAS GROWN SO LOUD THAT THE ADMINISTRATION IS EVEN CONSIDERING A BLANKET EXEMPTION FOR ALL INDUSTRIAL USES OF ENERGY LEAVING THE FULL BRUNT OF THE TAX TO FALL ON CONSUMERS SOME WINNERS IN THE LOBBYING SWEEPSTAKES ARE SURPRISED AT HOW LITTLE THE CLINTON ADMINISTRATION IS ASKING IN RETURN FOR BREAKS ON THE TAX ONE ENERGY LOBBYIST SAYS THAT IT WASN'T UNTIL AFTER HIS CLIENT RECEIVED A REQUESTED CHANGE THAT A TREASURY OFFICIAL ASKED THE CLIENT TO ENDORSE THE TAX BECAUSE IT WAS NO LONGER A QUID PRO QUO THE LOBBYIST SAYS HE REFUSED AS THE EXEMPTIONS PROLIFERATE THE RISK GROWS THAT THE TWIN JUSTIFICATIONS FOR THE TAX DEFICIT REDUCTION AND ENVIRONMENTAL PROTECTION WILL CRUMBLE TREASURY SECRETARY LLOYD BENTSEN HAS ALREADY SAID THAT REVENUES FROM THE TAX CURRENTLY ESTIMATED AT 71 BILLION OVER FIVE YEARS COULD FALL BY AS MUCH AS A THIRD AS A RESULT OF NEGOTIATIONS WITH THE SENATE WEAKENING THE TAX'S APPEAL TO DEFICIT HAWKS THAT POINT WAS REINFORCED BY SENATE MAJORITY LEADER GEORGE MITCHELL WHO SAID AFTER A WHITE HOUSE MEETING YESTERDAY THAT THE ENERGY TAX WILL BE MODIFIED SOMEWHAT BUT THE FINAL VERSION WILL CONTAIN A BROADBASED ENERGY TAX THE MAINE DEMOCRAT DIDN'T PROVIDE ANY DETAILS HOWEVER ENVIRONMENTALISTS MEANWHILE SAY THEY PROBABLY WON'T ABANDON MR CLINTON IN HIS FIGHT FOR THE TAX UNLESS HE AGREES TO AN ACROSSTHEBOARD EXEMPTION FOR INDUSTRY BUT AS EACH EXCEPTION IS GRANTED THEY ARE GROWING MORE AND MORE DISMAYED IT CLEARLY IS A WEAKENED TAX ENVIRONMENTALLY COMPLAINS DAWN ERLANDSON DIRECTOR OF TAX POLICY FOR FRIENDS OF THE EARTH THE BATTLE IS KEEPING WASHINGTON'S REVOLVING DOOR BETWEEN GOVERNMENT AND LOBBYING WELLGREASED TWO FORMER TOP TAX AIDES TO MR BENTSEN WHEN HE WAS CHAIRMAN OF THE SENATE FINANCE COMMITTEE ARE NOW WORKING ON BEHALF OF INDUSTRY TO ALTER THE TAX THE LAW FIRM OF JAMES GOULD WHO WAS THE FINANCE COMMITTEE'S STAFF DIRECTOR IN 1988 AND 1989 IS REPRESENTING THE PAPER INDUSTRY WHICH WANTS A BREAK ON EXPORTS IT'S MR GOULD'S LAW PARTNER LINDSAY HOOPER WHO'S REGISTERED TO LOBBY CONGRESS BUT MR GOULD HAS TALKED AT LENGTH WITH ADMINISTRATION OFFICIALS ON THE MATTER MEANWHILE BILL WILKINS WHO WAS STAFF DIRECTOR JUST PRIOR TO MR GOULD IS REGISTERED TO LOBBY ON BEHALF OF THE ELECTRIC GENERATION ASSOCIATION WHICH IS SEEKING TO LOWER THE TAX ON STEAM SALES TO MANUFACTURERS AND TO LEVY THE TAX ON MANUFACTURERS RATHER THAN ON COGENERATION PLANTS MR WILKINS IS AN ATTORNEY AT WILMER CUTLER & PICKERING WHOSE PARTNERS INCLUDE PROMINENT DEMOCRAT LLOYD CUTLER FORMER WHITE HOUSE COUNSEL TO JIMMY CARTER THE AMERICAN ENERGY ALLIANCE THE BIGGEST LOBBYING GROUP BATTLING THE TAX IS A COALITION HEADED BY THE AMERICAN PETROLEUM INSTITUTE THE US CHAMBER OF COMMERCE AND THE NATIONAL ASSOCIATION OF MANUFACTURERS THE ALLIANCE HAS HIRED BURSONMARSTELLER AND DIRECT IMPACT CO TO CONDUCT LOBBYING AND ADVERTISING CAMPAIGNS AGAINST THE TAX THE GROUP HAS PLEDGED TO SPEND AT LEAST 11 MILLION AND WE WOULDN'T BE SURPRISED IF IT DOUBLED SAYS LAURA BROWN A SPOKESWOMAN FOR THE MANUFACTURERS ASSOCIATION THE EFFORT STUMBLED BADLY AT FIRST ATTEMPTS TO RECRUIT DEMOCRATIC HEAVYWEIGHTS SUCH AS BOB BECKEL AND JODY POWELL TO DIRECT THE CAMPAIGN WERE UNSUCCESSFUL BECAUSE BOTH MEN WERE UNWILLING TO BATTLE A NEW DEMOCRATIC PRESIDENT ON THE ISSUE THEN THE LOBBYING FIRM HILL & KNOWLTON BACKED OUT OF THE JOB PARTLY BECAUSE THE COALITION WAS UNWILLING TO SUPPORT AN ALTERNATIVE TO THE BTU TAX AND IN MIDMAY THE GROUP HAD TO CHANGE ITS NAME FROM THE AFFORDABLE ENERGY ALLIANCE BECAUSE IT WAS TOO SIMILAR TO THE NAME OF A CONSUMER GROUP IN NEW ORLEANS THAT STRONGLY FAVORED THE TAX AND WAS THREATENING LEGAL ACTION BUT THE ALLIANCE HAS LATELY HAD MORE SUCCESS PUMMELING SENATORS IN LOUISIANA NEBRASKA MICHIGAN AND OTHER STATES WHERE THE ENERGY TAX APPEARS UNPOPULAR WITH FULLPAGE NEWSPAPER ADS DAMNING THE TAX AS A JOB DESTROYER THAT'S UNFAIR GEOGRAPHICALLY IN ADDITION THE LIBERTARIAN GROUP CITIZENS FOR A SOUND ECONOMY WHICH IS ALSO A MEMBER OF THE COALITION HAS PLACED TV ADS IN LOUISIANA OKLAHOMA MONTANA AND NORTH DAKOTA STATES WITH SWING DEMOCRATS ON THE FINANCE PANEL TO STOP THE TAX IN THE SENATE SEVERAL INDUSTRY GROUPS HAVE STAYED CLEAR OF THE COALITION AGAINST THE TAX TO CUT THEIR OWN DEALS THE NATURAL GAS INDUSTRY AWARE THAT THE CLINTON ADMINISTRATION WANTS TO PROMOTE MORE NATURAL GAS CONSUMPTION HAS TRIED TO KEEP A LOW PROFILE IN THE DEBATE THOUGH ITS TRADE ASSOCIATIONS WHEN PRESSED SAY THEY OPPOSE THE TAX HAVING SUCCEEDED IN GETTING THE HOUSE WAYS AND MEANS COMMITTEE TO MOVE THE TAX FROM UTILITIES ONTO CONSUMERS GAS UTILITIES ARE NOW WORKING QUIETLY TO GET THE SENATE TO RELIEVE THEM FROM THE RESPONSIBILITY OF MAKING UP REVENUE LOST WHEN CONSUMERS DON'T PAY THEIR BILLS AT A COST OF AS MUCH AS 20 MILLION A YEAR SIMILARLY THE INDEPENDENT PETROLEUM ASSOCIATION OF AMERICA SAYS IT OPPOSES THE BTU TAX BUT WANTED TO KEEP A LINE OF COMMUNICATION OPEN WITH THE WHITE HOUSE ACCORDING TO SPOKESWOMAN JUDY LEON BY NOT JOINING THE ALLIANCE SHE SAYS THE ASSOCIATION MANAGED TO BE VERY INFLUENTIAL IN PERSUADING THE TREASURY DEPARTMENT TO MOVE THE COLLECTION POINT FOR THE TAX AWAY FROM THE WELLHEAD BEFORE THE BILL WAS SENT TO THE HOUSE TWO EXEMPTIONS CONSIDERED ALMOST CERTAIN TO EMERGE FROM SENATE NEGOTIATIONS ARE FOR ETHANOL AND METHANOL TWO ALTERNATIVE FUELS DERIVED MAINLY FROM CORN AND NATURAL GAS RESPECTIVELY ON ETHANOL ARCHERDANIELSMIDLAND CO THE AGRICULTURAL GIANT THAT IS THE NATION'S LARGEST PRODUCER AND A MAJOR POLITICAL CONTRIBUTOR HAS BEEN LOBBYING VIGOROUSLY ON THE ISSUE THROUGH ITS TRADE GROUP THE RENEWABLE FUELS ASSOCIATION INITIALLY ETHANOL AND METHANOL WERE SUPPOSED TO BE SUBJECT TO THE TAX BUT WERE EXEMPTED BY THE CLINTON ADMINISTRATION LARGELY TO MOLLIFY FARMSTATE SENATORS ON THE FINANCE COMMITTEE INCLUDING DEMOCRATIC SENS TOM DASCHLE OF SOUTH DAKOTA AND KENT CONRAD OF NORTH DAKOTA SENATE GOP LEADER BOB DOLE OF KANSAS ANOTHER FINANCE COMMITTEE MEMBER IS ALSO A STRONG ADVOCATE OF ETHANOL FINALLY THE HOUSE WAYS AND MEANS COMMITTEE SUBJECTED THE FUELS ONCE AGAIN TO THE TAX PARTLY TO BALANCE THE FARMFUEL BREAK AND PARTLY TO TWEAK THE SENATE THE HYDROELECTRIC INDUSTRY IS ANOTHER LOBBY WITH CLOUT IN OTHER WORDS THE EAR OF A POWERFUL FINANCE COMMITTEE MEMBER DEMOCRATIC SEN MAX BAUCUS WHOSE HOME STATE OF MONTANA IS A HEAVY USER OF HYDROELECTRIC POWER MAY SEEK TO BLOCK THE TAX IF IT DOES NOT INCLUDE A 1 BILLION BREAK FOR THE INDUSTRY HYDRO PRODUCERS ARE ASKING FOR THE TAX TO BE LOWERED SUBSTANTIALLY FOR THEIR ENERGY SOURCE WHICH UNDER THE BILL WOULD BE TAXED AT THE SAME RATE AS FOSSIL FUELS EVEN THOUGH IT CONSUMES FAR FEWER BTUS THEY'RE CHARGING US THREE TIMES OUR RATE COMPLAINS LINDA CIOCCI EXECUTIVE DIRECTOR OF THE NATIONAL HYDROPOWER ASSOCIATION MEANWHILE OKLAHOMA SEN DAVID BOREN THE FINANCE COMMITTEE MEMBER WHO HAS EMERGED AS THE CHIEF DEMOCRATIC OPPONENT OF THE BTU TAX IS HOLDING OUT IN PART FOR A 17 BILLION TAX CREDIT FOR LOWPRODUCING OR STRIPPER WELLS THOUGH AN AIDE SAYS THAT CONCESSION ALONE ISN'T LIKELY TO BE ENOUGH TO WIN HIM OVER BREAKS IN THE PROPOSED BTU TAX ALREADY GRANTED BY THE CLINTON ADMINISTRATION AND THE HOUSE BREAKS BEING SOUGHT BY INDUSTRY IN THE SENATE 9306080094 930608 FOREIGN EXCHANGE DOLLAR ENDS MOSTLY LOWER AFTER SURGE FRIDAY ON CLIMB IN JOB LEVELS FOR MAY BY RICHARD SCHUMACHER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR FINISHED MOSTLY LOWER MONDAY DRIFTING DOWN AGAINST MOST MAJOR CURRENCIES IN LIGHT PROFIT TAKING AFTER HAVING SURGED FRIDAY ON AN UNEXPECTED JUMP IN US EMPLOYMENT LEVELS FOR MAY MEANWHILE THE PESETA ADVANCED SOLIDLY ON SHORT COVERING AFTER SPAIN'S SOCIALIST PARTY HELD OFF A CHALLENGE FROM THE CONSERVATIVE OPPOSITION IN PARLIAMENTARY ELECTIONS SUNDAY AND WON ITS FOURTH CONSECUTIVE TERM IN POWER LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16205 MARKS DOWN FROM 16265 MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10720 YEN DOWN FROM 10775 YEN STERLING WAS TRADING AT 15220 UP FROM 15090 ABOUT MIDDAY TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10687 YEN AND AT 16195 MARKS GIVEN AN ABSENCE OF SIGNIFICANT FRESH NEWS MONDAY DOLLAR TRADING WAS QUIET MARKET PARTICIPANTS SAID THE DOLLAR FAILED TO EXTEND THE SHARP GAINS IT REGISTERED FRIDAY AND THIS BROUGHT ON PROFIT TAKING SAID ALFONSO ALEJO VICE PRESIDENT OF CORPORATE FOREIGN EXCHANGE AT SAKURA BANK LTD PEOPLE WHO GOT IN NEAR THE HIGHS FRIDAY ARE GETTING OUT HE SAID A SMALL EARLY RALLY IN THE US TREASURY MARKET ALSO CONTRIBUTED TO THE DOLLAR'S DROP SAID JOHN MCCARTHY CHIEF DEALER AT ABNAMRO BANK HIGHER BOND PRICES REDUCE BOND YIELDS OR THE EFFECTIVE INTEREST RATES ON THE BONDS MR MCCARTHY NOTED AND LOWER INTEREST RATES TEND TO DIMINISH THE APPEAL OF A CURRENCY TO INVESTORS NEITHER THE MARKET'S SLUGGISH TONE NOR THE DOLLAR PROFIT TAKING WERE SURPRISING MR MCCARTHY SAID YOU FREQUENTLY SEE THIS AFTER A BIG SHAKEOUT THE DOLLAR'S MOVE UP FRIDAY WAS SO STRONG AND BROAD BASED HE ADDED THE US CURRENCY SURGED FRIDAY AFTER US NONFARM PAYROLLS IN MAY WERE REPORTED TO HAVE INCREASED 209000 FROM APRIL A LARGERTHANEXPECTED AMOUNT THE DATA SUGGESTED THE US ECONOMIC RECOVERY FINALLY MIGHT HAVE ESTABLISHED ITSELF AND ALSO HEIGHTENED EXPECTATIONS THAT US INTEREST RATES ARE ON THE VERGE OF AN INCREASE DEALERS SAID BECAUSE OF THE POTENTIAL FOR HIGHER RATES PARTICIPANTS ALREADY HAVE BEGUN TO FOCUS ON US MAY PRODUCER PRICE OR PPI DATA TO BE RELEASED FRIDAY AND MAY CONSUMER PRICE OR CPI STATISTICS TO BE RELEASED NEXT WEEK MR MCCARTHY ADDED THE MARKET IS CONCERNED ABOUT A STRONGERTHANEXPECTED INCREASE IN THOSE NUMBERS SAKURA BANK'S MR ALEJO SAID SUCH RESULTS WHICH WOULD FEED CONCERNS ABOUT RESURGENT INFLATION MIGHT TRIGGER RATE INCREASES BY THE FEDERAL RESERVE HE ADDED IN CROSS OR NONDOLLAR TRADING MONDAY THE PESETA JUMPED AFTER FELIPE GONZALEZ SPAIN'S PRIME MINISTER EARNED A FOURTH TERM IN OFFICE PLAYERS SAID MOST OF THE PESETA'S GAINS MONDAY CAME FROM SHORT COVERING SAID JACK O'MELIA CHIEF DEALER AT BANCO ESPANOL DE CREDITO LATE MONDAY IN NEW YORK THE PESETA TRADED AT 7680 PESETAS TO THE MARK UP FROM 7808 PESETAS LATE FRIDAY MR GONZALEZ'S SOCIALIST PARTY WON A PLURALITY IN PARLIAMENTARY ELECTIONS HELD SUNDAY CAPTURING 159 OF 350 SEATS IN THE LOWER HOUSE THE LEADING OPPOSITION PARTY THE CENTERRIGHT PARTIDO POPULAR PICKED UP 141 SEATS IT REMAINS UNCLEAR WHETHER MR GONZALEZ WILL ATTEMPT TO GOVERN WITH A MINORITY OR SEEK A COALITION WITH ANOTHER PARTY TRADERS SAID THE PESETA MIGHT HAVE STRENGTHENED EVEN MORE THAN IT DID MONDAY BUT FOR RUMORS THAT THE BANK OF SPAIN WAS SELLING PESETAS FOR MARKS AROUND 7650 PESETAS TO REPLENISH ITS FOREIGNCURRENCY RESERVES IN OTHER TRADING MONDAY THE CANADIAN DOLLAR SAGGED AGAIN ON GROWING SKEPTICISM ABOUT THE ABILITY OF THE ONTARIO PROVINCIAL GOVERNMENT TO ACHIEVE ITS GOAL OF CUTTING TWO BILLION CANADIAN DOLLARS FROM PUBLICSECTOR COMPENSATION COSTS DEALERS SAID THIS HAS RAISED CONCERNS THAT ONTARIO'S BOND RATINGS MIGHT BE DOWNGRADED THEY SAID LATE MONDAY IN NEW YORK THE US DOLLAR TRADED AT 12821 CANADIAN DOLLARS UP FROM 12795 ON FRIDAY BECAUSE A LARGE PORTION OF CANADIAN DEBT IS HELD BY FOREIGNERS THE CANADIAN DOLLAR IS PARTICULARLY SENSITIVE TO CHANGES IN BOND RATINGS TRADERS SAID LOWER RATINGS MAKE DEBT LESS ATTRACTIVE AND THUS IN THE CASE OF CANADA TEND TO LEAD TO MOVEMENT OUT OF THE CANADIAN CURRENCY THEY ADDED 9306080093 930608 FINANCING BUSINESS CELESTIAL SEASONINGS INC CELESTIAL SEASONINGS INC BOULDER COLO THE MAKER OF HERB TEAS SAID IT HAS FILED A REGISTRATION STATEMENT FOR AN INITIAL PUBLIC OFFERING OF 19 MILLION COMMON SHARES THE COMPANY WHICH LAST YEAR POSTED REVENUE OF 546 MILLION AND A LOSS OF 500000 SAID THE OFFERING WILL BE PRICED IN THE RANGE OF 1550 TO 1750 PAINEWEBBER INC AND LEHMAN BROTHERS WILL MANAGE THE OFFERING 9306080092 930608 TESORO AGREES ON PLAN FOR RECAPITALIZATION WITH HOLDER MET LIFE SAN ANTONIO TESORO PETROLEUM CORP SAID IT AGREED ON A RECAPITALIZATION PLAN WITH ITS LARGEST STOCKHOLDER METROPOLITAN LIFE INSURANCE CO THE MOVE PUSHES BACK THE REFINER'S DEADLINES TO REPURCHASE SOME STOCK THUS FREEING UP MUCHNEEDED CASH AT A TIME WHEN THE MARKET FOR RESIDUAL OIL ONE OF TESORO'S MAIN PRODUCTS IS SHRINKING THIS GIVES THE COMPANY A LITTLE BREATHING ROOM SAID TIMOTHY LOHMANN A DUFF & PHELPS ANALYST TESORO SAID THE PLAN STILL REQUIRES SEVERAL APPROVALS INCLUDING ONES FROM ITS DIRECTORS AND ITS BANK GROUP AS WELL AS HOLDERS OF VARIOUS CLASSES OF STOCK WHILE IT IS OPTIMISTIC TESORO SAID IN ITS STATEMENT THE REMAINING ISSUES ARE SIGNIFICANT AND MAY NOT BE RESOLVED UNDER THE AGREEMENT TESORO WOULD EXCHANGE METROPOLITAN'S HOLDING OF TESORO 220 SERIES PREFERRED SHARES FOR 18 MILLION SHARES OF COMMON STOCK AND AN EQUAL NUMBER OF SHARES OF A NEW 220 CUMULATIVE PREFERRED STOCK NOT CONVERTIBLE INTO COMMON STOCK METROPOLITAN INVESTED 733 MILLION IN THE 220 PREFERRED AND OWNS ALL OF IT THE PLAN ALSO GIVES TESORO A THREEYEAR OPTION TO ACQUIRE ALL THE NEW PREFERRED STOCK AND COMMON STOCK ISSUED TO METROPOLITAN LIFE TO BUY IT BACK TESORO WOULD HAVE TO PAY 50 MILLION IN THE FIRST YEAR PLUS ADDITIONAL AMOUNTS IN THE FOLLOWING TWO YEARS THE INSURER INVESTED 733 MILLION IN TESORO PREFERRED METROPOLITAN ALSO OWNS 28 OF THE PETROLEUM COMPANY'S COMMON STOCK OR 22 MILLION SHARES ORIGINALLY TESORO WAS TO HAVE REPURCHASED 666 OF THE PREFERRED STOCK IN 1994 UNDER THE NEW PLAN TESORO AGREES TO BUY BACK 10 PER YEAR BUT NOT STARTING UNTIL 1998 IN NEW YORK A SPOKESMAN FOR METROPOLITAN LIFE DECLINED TO COMMENT TESORO HAS HAD HEAVY LOSSES FOR SEVERAL YEARS WITH LAST YEAR'S OPERATING LOSS TOTALING 452 MILLION OR 387 A SHARE ON 946 MILLION IN REVENUE TRADING IN TESORO SHARES WAS HALTED YESTERDAY PENDING THE ANNOUNCEMENT AND DIDN'T RESUME ON THE NEW YORK STOCK EXCHANGE BEFORE TRADING WAS HALTED THE SHARES WERE QUOTED AT 6125 DOWN 125 CENTS 9306080091 930608 OTC FOCUS MARKET TUMBLES AMID SELLOFF LED BY HIGHTECH RIVERBOAT CASINO STOCKS BY CAITLIN MOLLISON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE OVERTHECOUNTER MARKET FELL YANKED DOWN BY ACROSSTHEBOARD SELLING LED BY TECHNOLOGY AND RIVERBOATCASINO STOCKS THE NASDAQ COMPOSITE INDEX TUMBLED 740 OR 105 TO 69461 DECLINING ISSUES OUTNUMBERED ADVANCERS 1596 TO 1150 ON TOTAL VOLUME OF 2479 MILLION SHARES DOWN FROM FRIDAY'S 2518 MILLION ALTHOUGH THE BOND MARKET ACTED FAIRLY WELL A LOT OF INVESTORS ARE NERVOUS THAT INTEREST RATES MIGHT RISE SAID LANCE ZIPPER HEAD OF OTC TRADING AT KIDDER PEABODY & CO BUT PEOPLE AREN'T BLOWING OUT OF POSITIONS IN A PANIC STYLE AND I DON'T SEE A TON OF BIG SELL ORDERS IT'S MORE OF A MARKET CONSOLIDATION WILLIAM ROTHE HEAD OF NASDAQ TRADING AT ALEX BROWN & SONS SAID THE MARKET IS HIGH BY HISTORICAL STANDARDS AND THE PROFITTAKING IS A TEMPORARY SLOWDOWN DESPITE THE SELLOFF INTEL JUMPED 1 3/4 TO 58 1/8 AS THE DAY'S MOST ACTIVE STOCK ON 108 MILLION SHARES INTEL WON A VICTORY LATE FRIDAY WHEN THE CALIFORNIA COURT OF APPEALS OVERTURNED A FEBRUARY 1992 ARBITRATION AWARD THAT GAVE ADVANCED MICRO DEVICES THE RIGHT TO MAKE CLONES OF INTEL'S 386 MICROPROCESSOR WHICH FUNCTIONS AS THE BRAINS OF MILLIONS OF COMPUTERS RIVERBOATCASINO STOCKS WERE SLAPPED DOWN FROM THEIR SOARING PRICE LEVELS AS INVESTORS WORRIED ABOUT SATURATION IN THE MARKET CASINO MAGIC PLUMMETED 8 TO 70 1/2 THE STOCK TRADED AS LOW AS 67 3/4 UNDER SPECULATION THAT ITS RIVERBOAT CASINO MARKET MIGHT BE GETTING OVERSUPPLIED WITH CASINOS CASINO MAGIC OPENED ITS BILOXI MISS FACILITY THIS PAST WEEKEND GRAND CASINOS SLID 3 1/8 TO 43 3/4 GRAND CASINOS OPENED THE LARGEST CASINO YET IN GULFPORT ON THE MISSISSSIPPI GULF COAST IN MIDMAY AND HAS TAKEN BUSINESS FROM THE OTHER GULF COAST CASINOS ANALYSTS SAID SEVERAL OTHER RIVERBOAT CASINORELATED STOCKS AROUND THE COUNTRY ALSO FELL PRESIDENT RIVERBOAT CASINOS DROPPED 3 7/8 TO 42 7/8 ARGOSY GAMING SLIPPED 1 3/4 TO 32 1/4 HOLLYWOOD CASINO TOPPLED 3 TO 24 AND NONA MORELLI SUNK 1/8 TO 1 11/32 THE CASINOSTOCK FRENZY AND HOLLYWOOD CASINO'S ROLE IN IT WAS SPOTLIGHTED IN YESTERDAY'S OTC FOCUS COLUMN APPLE COMPUTER DROPPED 4 1/8 TO 50 3/4 AFTER ANALYSTS AT DEAN WITTER REYNOLDS AND BEAR STEARNS MADE NEGATIVE COMMENTS ABOUT EARNINGS EXPECTATIONS DEAN WITTER ANALYST EUGENE GLAZER TRIMMED HIS FISCAL 1993 EARNINGS ESTIMATE TO 4 A SHARE FROM 430 AND CUT HIS FISCAL 1994 ESTIMATE TO 450 A SHARE FROM 485 SAYING REVENUE THIS QUARTER ISN'T MEETING EXPECTATIONS COMPUTER NETWORKING STOCKS SYNOPTICS COMMUNICATIONS FELL 2 7/8 TO 103 1/8 AND CISCO SYSTEMS SLID 1 1/8 TO 51 MICROSOFT EASED 3/4 TO 93 1/4 ORACLE CORP TUMBLED 2 1/2 TO 41 1/2 ELECTRONIC ARTS TOPPLED 4 1/2 TO 28 1/2 DONALDSON LUFKIN & JENRETTE ANALYST SCOTT SMITH DOWNGRADED THE STOCK TO MODERATELY ATTRACTIVE FROM BUY HE CITED SOFT SALES SO FAR FOR THE COMPANY'S BULLS VS BLAZERS GAME FOR SEGA GENESIS AND FOR ITS STRIKE COMMANDER GAME MR SMITH DIDN'T CHANGE HIS EARNINGS PROJECTION OF 14 CENTS A SHARE FOR THE SAN MATEO CALIF COMPANY IN THE FISCALFIRST QUARTER ENDING THIS MONTH THE YEARAGO QUARTER'S PROFIT WAS 10 CENTS A SHARE TBC CORP DROPPED 3 7/8 TO 11 7/8 TBC SAID IT EXPECTS TO REPORT LOWER SECONDQUARTER EARNINGS THAN THE YEARAGO SPLITADJUSTED 20 CENTS A SHARE THE PATTERN IN INCOMING ORDERS HAS SOFTENED SOMEWHAT TBC SAID THE MEMPHIS TENN COMPANY DISTRIBUTES AUTO PARTS INCLUDING TIRES BATTERIES AND TUBES MULTIBANK FINANCIAL FELL 3 3/4 TO 20 1/2 THE FEDERAL RESERVE BOARD OF GOVERNORS WAS UNABLE TO DECIDE IF BANK OF BOSTON WILL BE ALLOWED TO BUY MULTIBANK FINANCIAL AND SOCIETY FOR SAVINGS BANCORP FOR A TOTAL OF 400 MILLION IN STOCK LAST WEEK THE BOARD PRELIMINARILY DECIDED AGAINST APPROVING THE APPLICATION BUT PLANS TO RECONSIDER THE MATTER TOMORROW REPLIGEN JUMPED 1 3/4 TO 7 3/4 THE CAMBRIDGE MASS COMPANY SAID A PHASE I CLINICAL STUDY WITH ITS HIV THERAPEUTIC VACCCINE CANDIDATE HAS BEGUN AT THE UNIVERSITY OF COLORADO HEALTH SCIENCES CENTER SNAPPLE BEVERAGE SURGED 5 3/4 TO 62 1/4 PAINEWEBBER ANALYST EMANUEL GOLDMAN RAISED HIS RATING TO ATTRACTIVE FROM NEUTRAL BASED ON SUPERMARKET SCANNER DATA HE RECEIVED RECENTLY HE ALSO RAISED HIS EARNINGS ESTIMATES TO 155 A SHARE FROM 135 FOR THIS YEAR AND TO 230 A SHARE FROM 190 FOR 1994 9306080090 930608 LAW SEC SUIT SETTLED BY EXPARTNER OF GOLDMAN SACHS BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ROBERT M FREEMAN THE FORMER GOLDMAN SACHS & CO PARTNER WHO PLEADED GUILTY TO INSIDER TRADING IN 1989 YESTERDAY SETTLED A SIMILAR CIVIL SUIT BROUGHT BY THE SECURITIES AND EXCHANGE COMMISSION MR FREEMAN THE FORMER HEAD OF GOLDMAN'S ARBITRAGE DEPARTMENT AGREED TO PAY THE SEC 11 MILLION AND TO STAY OUT OF THE SECURITIES INDUSTRY FOR THREE YEARS MR FREEMAN'S LAWYERS HOWEVER SAID THE SETTLEMENT WAS A VINDICATION FOR THEIR CLIENT BECAUSE IT CONTAINED CHARGES NO BROADER THAN THE SINGLE COUNT OF INSIDER TRADING IN BEATRICE COS STOCK THAT HE ADMITTED IN 1989 MR FREEMAN SERVED FOUR MONTHS IN PRISON AND PAID A 1 MILLION FINE IN THE CRIMINAL CASE BEFORE MR FREEMAN'S 1990 SENTENCING IN THE CRIMINAL CASE FEDERAL PROSECUTORS ARGUED THAT THE BEATRICE INSIDER TRADING WASN'T AN ISOLATED INCIDENT AND THAT THERE WAS EVIDENCE MR FREEMAN HAD COMMITTED AS MANY AS 20 ADDITIONAL SECURITIESRELATED CRIMES BUT NO HEARING EVER WAS HELD TO CONSIDER THAT EVIDENCE SOME OF WHICH CONCERNED ALLEGATIONS OF WIDESPREAD TRADING OF INSIDER INFORMATION AMONG ARBITRAGERS THAT LEFT THE SEC CIVIL CASE AS THE FINAL OFFICIAL FORUM TO JUDGE MR FREEMAN WHOSE 1987 ARREST AND HANDCUFFING IN GOLDMAN SACHS'S NEW YORK OFFICES BECAME A SYMBOL TO SOME OBSERVERS OF PROSECUTORIAL EXCESS THE SEC INVESTIGATED BEYOND BEATRICE AND AFTER A LENGTHY AND THOROUGH INVESTIGATION ENDED UP WITH ONLY BEATRICE SAID PAUL J CURRAN AN ATTORNEY AT KAYE SCHOLER FIERMAN HAYS & HANDLER WHO REPRESENTED MR FREEMAN SEC OFFICIALS DECLINED TO ELABORATE ON THEIR INVESTIGATION BUT SAID THEY WERE SATISFIED WITH THE SETTLEMENT THE GUY IS A CONVICTED FELON WE OBTAINED FULL INJUNCTIVE RELIEF AGAINST HIM AND A BAN FOR THREE YEARS FROM THE INDUSTRY THAT DOESN'T SOUND LIKE VINDICATION TO ME SAID THOMAS NEWKIRK ASSOCIATE DIRECTOR OF THE SEC'S DIVISION OF ENFORCEMENT THE 11 MILLION THAT MR FREEMAN AGREED TO PAY THE SEC COVERS LOSSES THAT HE HIS FAMILY GOLDMAN SACHS AND A GOLDMAN SACHS TRADING CUSTOMER AVOIDED BY SELLING BEATRICE POSITIONS BEFORE AN ANNOUNCEMENT THAT A DEAL TO TAKE OVER THE FOOD CONCERN HAD FALLEN APART MR FREEMAN GOT HIS INFORMATION FROM MARTIN SIEGEL THE INVESTMENT BANKER AT KIDDER PEABODY & CO WHO ALSO SOLD INFORMATION TO IVAN BOESKY MR SIEGEL WHO WAS INVOLVED IN THE BEATRICE DEAL CONFIRMED MR FREEMAN'S WORRIES THAT THE TAKEOVER WAS FALLING APART BY TELLING HIM YOUR BUNNY HAS A GOOD NOSE HE WAS REFERRING TO BERNARD BUNNY LASKER A PROMINENT TRADER WHO HAD TOLD MR FREEMAN THERE WERE PROBLEMS WITH THE TAKEOVER ATTEMPT IN COVERING GOLDMAN'S POTENTIAL LIABILITY FOR THE AVOIDED TRADING LOSSES MR FREEMAN'S SETTLEMENT LETS THE PRESTIGIOUS INVESTMENT BANKING FIRM OFF THE HOOK AN SEC OFFICIAL SAID THE INVESTIGATION IS CLOSED AND THE FIRM WON'T FACE CHARGES GOLDMAN SACHS HAD BEEN CRITICIZED FOR BEING TOO SUPPORTIVE OF MR FREEMAN WHO DIDN'T RESIGN UNTIL TWO YEARS AFTER HIS ARREST IN A STATEMENT GOLDMAN SACHS SAID THE SEC CASE DIDN'T GO BEYOND THE SAME NARROW FACTS THAT RESULTED IN BOB'S EARLIER PLEA THE FIRM ALSO OFFERED BEST WISHES TO MR FREEMAN AND HIS FAMILY MR FREEMAN HAS BEEN OUT OF PRISON FOR NEARLY THREE YEARS DURING THE FIRST YEAR HE PERFORMED 300 HOURS OF COMMUNITY SERVICE THAT THE SENTENCING JUDGE ORDERED BY TUTORING AND COACHING BASKETBALL AT BOYS HARBOR INC A SOCIALSERVICE AGENCY FOR UNDERPRIVILEGED YOUTH IN EAST HARLEM NY ALTHOUGH MR FREEMAN IS BARRED FROM THE SECURITIES INDUSTRY FOR THREE YEARS HE CAN PROVIDE INVESTMENT ADVICE AT AN UNREGISTERED INVESTMENT ADVISORY FIRM OR ONE WITH FEWER THAN 15 CLIENTS MR CURRAN SAID THAT ASIDE FROM MANAGING HIS OWN MONEY MR FREEMAN HAS NO IMMEDIATE PLANS TO RETURN TO WORK 9306080089 930608 TECHNOLOGY & HEALTH ADVANCED MICRO STOCK PLUNGES 15 ON RULING FOR INTEL BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL ADVANCED MICRO DEVICES INC'S STOCK PLUNGED 15 FOLLOWING A LEGAL RULING FAVORING ARCHRIVAL INTEL CORP IN THE COMPANIES' LONGRUNNING COPYRIGHT FEUD AS REPORTED THE CALIFORNIA COURT OF APPEALS ON FRIDAY GUTTED A 1992 ARBITRATION AWARD THAT GAVE ADVANCED MICRO THE RIGHTS TO MANUFACTURE INTEL'S 386 MICROPROCESSOR THE BRAINS OF MILLIONS OF COMPUTERS THAT RULING FREES INTEL TO PRESS A LONGSTANDING FEDERAL COPYRIGHTINFRINGEMENT CASE AGAINST ADVANCED MICRO INTEL HAS SUGGESTED THAT DAMAGES IN BOTH CASES COULD TOTAL MORE THAN 1 BILLION HOWEVER WALL STREET'S REACTION YESTERDAY WAS RELATIVELY MUTED IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE ADVANCED MICRO CLOSED AT 2375 A SHARE DOWN 425 INTEL JUMPED 31 TO 58125 A SHARE UP 175 IN LATE OVERTHECOUNTER TRADING REFLECTING A 2FOR1 STOCK SPLIT EFFECTIVE SUNDAY THE PRICE SHIFTS WERE MODEST COMPARED WITH THE WILD SWINGS THAT HAVE ACCOMPANIED SOME OTHER RULINGS IN THE SEESAW LEGAL FIGHT BETWEEN THE COMPANIES WHICH HAS GONE ON FOR SIX YEARS IT'S A COMPARATIVELY SANE RESPONSE TO A MUDDLED SITUATION SAID DREW PECK A SEMICONDUCTOR ANALYST FOR DONALDSON LUFKIN & JENRETTE THE RULING IS CLEARLY A SETBACK FOR ADVANCED MICRO STANDARD & POOR'S CORP DOWNGRADED 173 MILLION OF PREFERRED STOCK TO SINGLEB FROM DOUBLEBMINUS REFLECTING CONCERNS ABOUT THE RULING HOWEVER SEVERAL ANALYSTS SAID IT'S TOO EARLY TO TELL WHAT IMPACT THE DISPUTE WILL HAVE ON ADVANCED MICRO THE TWO COMPANIES HAVE SEVERAL YEARS OF LEGAL SKIRMISHING AHEAD BEFORE ANYTHING IS SETTLED ADVANCED MICRO HAS ALREADY SAID IT WILL ASK THE APPEALS COURT TO RECONSIDER ITS RULING AND WILL APPEAL TO THE STATE SUPREME COURT IF NECESSARY AND OVER THE COURSE OF THE BATTLE ADVANCED MICRO HAS ITSELF WON FAVORABLE RULINGS WHICH INTEL HAS APPEALED MOREOVER THE RULING DOESN'T IMMEDIATELY AFFECT ADVANCED MICRO'S ABILITY TO SHIP ITS VERSION 386 CHIPS OR ITS CLONE OF INTEL'S POWERFUL 486 CHIPS ADVANCED MICRO ALSO STILL PLANS TO INTRODUCE ITS OWN PROPRIETARY VERSION OF THE 486 CHIP WHICH INCORPORATES TECHNOLOGY DESIGNED BY ADVANCED MICRO ENGINEERS ON JULY 6 IT'S BUSINESS AS USUAL FOR US SAID ANTHONY HOLBROOK VICE CHAIRMAN AND CHIEF TECHNOLOGY OFFICER HE SAID ADVANCED MICRO HASN'T SET ASIDE ANY RESERVES FOR POTENTIAL ADVERSE OUTCOMES OF THE FIGHT WITH INTEL AND HE SAID ADVANCED MICRO'S CUSTOMERS ARE SO FAR INDICATING THAT THEY WON'T ABANDON IT IN THE WAKE OF THE LATEST RULING 9306080088 930608 BANKS CAN CONTINUE TO SELL INSURANCE IN SMALL TOWNS SUPREME COURT RULES BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT SAID NATIONAL BANKS MAY CONTINUE TO SELL INSURANCE FROM BRANCHES IN SMALL TOWNS THE UNANIMOUS RULING IMMEDIATELY AFFECTS THOUSANDS OF BANKS THAT SELL INSURANCE UNDER A 1916 LAW THE JUSTICES REJECTED A CHALLENGE BY INSURANCE AGENTS WHO HAVE BEEN FIGHTING BANK ENCROACHMENT ON THEIR TURF YESTERDAY'S DECISION DOESN'T INVOLVE THE MANY BANKS OWNED BY HOLDING COMPANIES BANK HOLDING COMPANIES HAVE AUTHORITY SEPARATE FROM THE 1916 LAW TO OPERATE INSURANCE SUBSIDIARIES IN SMALL TOWNS THE RULING TURNED ON AN ARCANE QUESTION OF STATUTORY INTERPRETATION HAD CONGRESS AS A RESULT OF SLOPPY PUNCTUATION INADVERTENTLY REPEALED BANKS' AUTHORITY TO SELL INSURANCE THE JUSTICES SAID IT HADN'T THE DISPUTED PROVISION KNOWN AS SECTION 92 AUTHORIZED THE SALE OF INSURANCE BY NATIONAL BANKS THAT DO BUSINESS IN TOWNS OF FEWER THAN 5000 PEOPLE CONGRESS DIDN'T MAKE IT CLEAR IN 1916 EXACTLY WHERE SECTION 92 FIT INTO THE US CODE BECAUSE OF THIS AMBIGUITY WHICH WAS RELATED TO THE MISPLACEMENT OF QUOTATION MARKS SEPARATE LEGISLATION IN 1918 APPEARED TO HAVE REPEALED SECTION 92 SUBSEQUENT EDITIONS OF THE CODE OMITTED THE INSURANCESALES PROVISION BUT FEDERAL BANK REGULATORS AND CONGRESS NEVERTHELESS ASSUMED THAT SECTION 92 WAS GOOD LAW THE CASE DECIDED BY THE HIGH COURT GREW OUT OF A 1986 REGULATORY RULING BY THE COMPTROLLER OF THE CURRENCY THAT A NATIONAL BANK BRANCH IN A SMALL TOWN COULD SELL INSURANCE NOT ONLY WITHIN THE TOWN BUT ALSO TO CUSTOMERS OUTSIDE THE COMMUNITY INSURANCE AGENTS' TRADE ASSOCIATIONS CHALLENGED THAT RULING IN COURT THE SUPREME COURT DIDN'T ADDRESS THE COMPTROLLER'S RULING INSTEAD THE JUSTICES LIMITED THEIR ACTION TO REVERSING A SUBSEQUENT FEDERAL APPEALS COURT DECISION THAT SAID CONGRESS IN 1918 HAD REPEALED BANKS' AUTHORITY TO SELL INSURANCE IN THE FIRST PLACE IN AN OPINION WRITTEN BY JUSTICE DAVID SOUTER THE HIGH COURT SAID THAT CONGRESS APPARENTLY MADE A SCRIVENER'S ERROR BUT HADN'T INTENDED TO REPEAL THE DISPUTED PROVISION THE TRUE MEANING OF THE 1916 ACT IS CLEAR BEYOND QUESTION AND SO WE REPUNCTUATE JUSTICE SOUTER WROTE US NATIONAL BANK OF OREGON VS INDEPENDENT INSURANCE AGENTS OF AMERICA US VS INDEPENDENT INSURANCE AGENTS OF AMERICA IN A SEPARATE WIN FOR BANKS THE SUPREME COURT SAID AN INDIVIDUAL WHO SEEKS BANKRUPTCYLAW PROTECTION FROM CREDITORS MUST PAY INTEREST ON DELINQUENT HOME MORTGAGE PAYMENTS THE RULING APPLIES TO BANKRUPTCY CASES FILED UNDER CHAPTER 13 WHICH ALLOWS FINANCIALLY TROUBLED INDIVIDUALS WHO HAVE STEADY INCOMES TO KEEP SOME OF THEIR ASSETS SELL OTHERS AND REPAY THEIR DEBTS OVER A PERIOD OF YEARS IN ANOTHER CASE THE HIGH COURT MADE IT TOUGHER FOR SOME NURSING HOMES AND HOSPITALS TO GET FEDERAL REIMBURSEMENTS UNDER THE MEDICARE PROGRAM WHICH HELPS PAY FOR THE HEALTH CARE OF THE AGED AND DISABLED THE RULING WAS A LIMITED VICTORY FOR THE CLINTON ADMINISTRATION AS IT ATTEMPTS TO FIND WAYS TO LIMIT FEDERAL SPENDING WHILE REFORMING THE HEALTHCARE SYSTEM BY A 63 VOTE THE JUSTICES SAID THE GOVERNMENT DOESN'T HAVE TO ALLOW REIMBURSEMENTS UNDER MEDICARE BEYOND WHAT REGULATORS CONSIDER REASONABLE COSTS THE DECISION COULD AFFECT MORE THAN 12200 NURSING HOMES AND AGENCIES THAT PROVIDE CARE IN PATIENTS' HOMES SOME HOSPITALS ALSO WILL BE AFFECTED THESE INSTITUTIONS NOW RECEIVE MORE THAN 77 BILLION A YEAR UNDER THE MEDICARE PROGRAM MOST HOSPITAL INPATIENT SERVICES ARE REIMBURSED BY ANOTHER PART OF THE MEDICARE PROGRAM COST LIMITS SET BY THE HEALTH AND HUMAN SERVICES DEPARTMENT RESULT IN THE FEDERAL GOVERNMENT'S REJECTING 400 MILLION A YEAR IN REIMBURSEMENTS SOUGHT BY NURSING HOMES AND HOMECARE AGENCIES THE QUESTION IN THIS CASE WAS WHETHER INDIVIDUAL FACILITIES MAY CHALLENGE THE GOVERNMENT'S DETERMINATION OF REASONABLE COSTS FOR PARTICULAR KINDS OF CARE AND SEEK ADDITIONAL REIMBURSEMENTS THE CLINTON ADMINISTRATION CONTENDED THAT IT ISN'T OBLIGATED TO RECONSIDER ITS REIMBURSEMENTS OR PROVIDE ADDITIONAL MONEY THE SUPREME COURT MAJORITY YESTERDAY AGREED THE RULING TURNED ON STATUTORY INTERPRETATIONS BY THE DEPARTMENT WRITING FOR THE MAJORITY JUSTICE BYRON WHITE SAID THE RELEVANT LAW IS AMBIGUOUS AND THE JUDICIARY OUGHT TO DEFER IN SUCH CASES TO THE ASSESSMENT OF EXECUTIVEBRANCH OFFICIALS IN OTHER ACTION THE JUSTICES SAID THEY WOULD DECIDE WHETHER A WIDELY USED FEDERAL SECURITIESFRAUD LAW PERMITS PRIVATE INDIVIDUALS TO FILE LAWSUITS ALLEGING THAT SOMEONE HAS AIDED AND ABETTED A FRAUDULENT SCHEME IT HAS BEEN WIDELY ASSUMED THAT SUCH A PRIVATE RIGHT TO SUE EXISTS BUT THE COURT HAS BEEN TAKING A CLOSER LOOK AT THE WHOLE ISSUE OF IMPLIED RIGHTS TO SUE IN LAWS THAT DON'T EXPLICITLY CONFER THEM IF IT DECIDES SUCH SUITS ARE ALLOWED THE HIGH COURT SAID IT WOULD CLARIFY WHAT TYPE OF PROOF A PLAINTIFF MUST PRODUCE TO PREVAIL AGREED TO CONSIDER AN AIRLINE INDUSTRY CHALLENGE TO WHAT CARRIERS CONTEND ARE EXCESSIVE FEES THEY ARE FORCED TO PAY TO USE MANY US AIRPORTS AMERICAN AIRLINE COMPANIES MANY OF WHICH ARE LOSING MONEY PAID 34 BILLION IN 1991 IN AIRPORT FEES ACCOUNTING FOR ROUGHLY 45 OF THEIR TOTAL OPERATING COSTS ACCORDING TO THE INDUSTRY'S FIGURES CARRIERS COMPLAIN THAT SOME AIRPORT AUTHORITIES ARE GOUGING CARRIERS FOR FEES OUT OF PROPORTION TO ACTUAL USE OF AIRPORT FACILITIES NORTHWEST AIRLINES INC VS KENT COUNTY MICH 9306080087 930608 WHO'S NEWS TULLY IS NAMED CHAIRMAN AT MERRILL FIRM'S CLIENT ASSETS TOP 500 BILLION BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MERRILL LYNCH & CO NAMED DANIEL P TULLY ITS CHIEF EXECUTIVE OFFICER TO THE ADDITIONAL POSITION OF CHAIRMAN EFFECTIVE JUNE 29 THE NATION'S LARGEST BROKERAGE FIRM ALSO SAID THAT ITS TOTAL CLIENT ASSETS TOPPED 500 BILLION AT THE END OF MAY WHILE MR TULLY'S SELECTION TO THE CHAIRMAN'S SPOT HAD BEEN EXPECTED FOR A LONG TIME HIS PROMOTION LEAVES OPEN THE POSITION OF PRESIDENT AT MERRILL ANALYSTS SAY THE THREE LEADING CANDIDATES TO ASSUME THE POSITION ARE JOHN L STEFFENS HEAD OF MERRILL'S BROKERAGE OPERATIONS HERBERT M ALLISON JR HEAD OF INVESTMENT BANKING AND FORMER CHIEF FINANCIAL OFFICER AND DAVID KOMANSKY HEAD OF THE FIRM'S EQUITY AND BOND DIVISIONS EACH OF THE THESE THREE HAS A HEAVY RESUME SAYS JOHN KEEFE OF KEEFE WORLDWIDE INFORMATION SERVICES STEFFENS HAS MADE THE RETAILBROKERAGE ARM ONE OF THE MOST POWERFUL FORCES ON WALL STREET ALLISON BROUGHT COSTS UNDER CONTROL AND RESTORED PROFITABILITY AT THE FIRM AND KOMANSKY HELPED BUILD THE CAPITALMARKETS GROUP MR KEEFE SAYS MESSRS ALLISON AND KOMANSKY HAVE THE BROADEST EXPERIENCE AT MERRILL HAVING HELD A VARIETY OF TOPLEVEL RESPONSIBILITIES AT THE FIRM BUT PEOPLE FAMILIAR WITH MERRILL SAY MR STEFFENS STILL HAS THE INSIDE TRACK FOR THE PRESIDENT'S JOB MR STEFFENS IS LARGELY CREDITED WITH ENABLING MERRILL TO PASS THE 500 BILLION MARK IN CLIENT ASSETS MERRILL EXECUTIVES SAY HOWEVER MERRILL IS NOT OBLIGATED TO NAME A NEW PRESIDENT ANYTIME SOON INDEED IN THE PAST THE POSITION HAS REMAINED EMPTY FOR AS LONG AS A YEAR MR TULLY WHO BECAME CHIEF EXECUTIVE IN FEBRUARY 1992 IS A FORMER MERRILL STOCKBROKER WHO HAS SPENT HIS ENTIRE CAREER AT THE FIRM DURING HIS 38YEAR TENURE MR TULLY HAS BEEN INVOLVED IN ACCOUNTING OPERATIONS AND THE BROKERAGE BUSINESS HE HEADED MERRILL'S PRIVATE CLIENT GROUP BEFORE BEING NAMED PRESIDENT AND CHIEF OPERATING OFFICER IN JULY 1985 MR TULLY'S APPOINTMENT COMES AS MERRILL IS ENJOYING RECORD EARNINGS THE FIRM EARNED 894 MILLION IN 1992 UP 28 FROM 1991 AMONG MR TULLY'S CHALLENGES WILL BE TO SUSTAIN MERRILL'S PROFITABILITY IN THE FACE OF COMPETITION FROM THE NEWLY CREATED BROKERAGE GIANT SMITH BARNEY SHEARSON INC THE NEW FIRM WILL BE RIGHT BEHIND MERRILL IN TERMS OF THE SIZE OF ITS BROKERAGE FORCE MERRILL HAS ABOUT 11500 FINANCIAL CONSULTANTS WHILE SMITH BARNEY SHEARSON EMPLOYS NEARLY 11000 MR TULLY 61 YEARS OLD SUCCEEDS WILLIAM A SCHREYER 65 WHO HAD ANNOUNCED HIS RETIREMENT AND WILL BECOME CHAIRMAN EMERITUS 9306080086 930608 WORLD MARKETS TOKYO PRICES END MIXED LONDON SHARES CLIMB ON BRIGHTENING MOOD FRANKFURT EQUITIES RALLY A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS FINISHED NARROWLY MIXED IN THIN TRADING MONDAY AHEAD OF A NATIONAL HOLIDAY WEDNESDAY AND JAPANESE ECONOMIC REPORTS LATER THIS WEEK LONDON PRICES CLIMBED ON OPTIMISM ABOUT BRITISH CORPORATE EARNINGS AND INTEREST RATES FRANKFURT SHARES RALLIED 11 MAINLY IN A TECHNICAL BOOST WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10760 UP 009 REFLECTING INCREASES IN MARKETS IN EUROPE AND THE ASIA/PACIFIC REGION AND A DROP IN THE AMERICAS CONSUMERSERVICES STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 10264 UP 104 OR 1 WITH H & R BLOCK OF THE US POSTING AN 21 GAIN IN ITS LOCAL CURRENCY HOUSEWARES STOCKS TRAILED AT 8699 DOWN 267 OR 3 WITH NEWELL OF THE US SLIDING 11 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH DROPPED 19376 POINTS FRIDAY DECLINED 3805 TO 2084419 ON TUESDAY THE NIKKEI FELL 22648 POINTS TO CLOSE THE MORNING SESSION AT 2061771 FRIDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 350 MILLION SHARES DOWN SHARPLY FROM 5631 MILLION SHARES ON THURSDAY GAINERS NARROWLY EDGED OUT LOSERS 523504 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH FELL 443 POINTS FRIDAY EDGED UP 015 TO 167185 THE NIKKEI INDEX LOST GROUND AFTER AGAIN FAILING TO HOLD ABOVE THE 21000 LEVEL PARTLY ON CORPORATE BANKRUPTCY SPECULATION AND MOVED BETWEEN A LOW OF 2082954 AND A HIGH OF 2110180 THE MARKET WAS EXPECTED TO REMAIN ADRIFT THIS WEEK WITH LOW TURNOVER AHEAD OF FRIDAY'S TANKAN REPORT BY THE JAPANESE CENTRAL BANK ON BUSINESS SENTIMENT AND THE SPECIAL QUOTATION TO SETTLE JUNE FUTURESCONTRACT PRICES THE BUSINESS SURVEY COULD SHOW A MILD IMPROVEMENT THOUGH A PESSIMISTIC REPORT COULD HELP THE SCENARIO FOR LOWER INTEREST RATES AND THUS STOCK PRICES FOREIGN INVESTORS CONTINUED TO BUY FINANCIAL SHARES WHICH BEGAN TO PUSH HIGHER LAST WEEK ON SPECULATION THAT THE JAPANESE YEN'S RISE TO HISTORIC HIGHS AGAINST THE US DOLLAR WOULD FORCE THE BANK OF JAPAN TO CUT ITS DISCOUNT RATE AGAIN IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX CLIMBED 149 POINTS TO 28448 THE FT 30STOCK INDEX ROSE 111 POINTS TO 22242 VOLUME WAS 456 MILLION SHARES COMPARED WITH 6256 MILLION SHARES IN THE PREVIOUS SESSION ON THE FIRST DAY OF A NEW ACCOUNTING PERIOD POSITIVE BRITISH CORPORATE EARNINGS BUOYED INVESTORS WHO ALSO SPECULATED ON INTENTIONS TOWARD MONETARY POLICY BY THE NEW CHANCELLOR OF THE EXCHEQUER KENNETH CLARKE MARKET BETS LEANED TOWARD A CUT IN BASE LENDING RATES FOLLOWING THE LEAD OF SOME OTHER EUROPEAN COUNTRIES IN FRANKFURT THE DAX 30STOCK INDEX ADVANCED 1776 POINTS TO 165561 AFTER PEAKING AT 165767 FUNDAMENTALS DIDN'T PLAY MUCH OF A ROLE AS 27 OF THE DAX STOCKS CLIMBED AND ONLY THREE FELL THE FUTURES MARKET WAS STRONG AND TRADERS IN THAT ARENA COVERED SHORT POSITIONS BUYING TO REPLACED POSITIONS BORROWED IN HOPES OF PROFITING ON PRICE DECLINES AS THE DAX ROSE STOCKS ALSO GOT SOME SUPPORT FROM THE STRENGTHENING DOLLAR WHICH COULD HELP US IMPORTS PARIS SHARE PRICES WHICH OPENED LOWER RALLIED PARTLY REFLECTING ARBITRAGE TRADING BETWEEN INDEXRELATED OPTIONS AND UNDERLYING STOCKS EASED INTEREST RATES AND THE FIRM FRENCH FRANC AMSTERDAM STOCKS ROSE AS GLOBALLY TRADED MULTINATIONALS GOT A BOOST FROM A BUOYANT DOLLAR MILAN SHARES PLUNGED ON POLITICAL WORRIES AND CORPORATE FINANCIAL TROUBLES A RALLY AT THE END OF THE SESSION WAS TOO TAME TO COVER LOSSES THE SELLING WAVE WAS SPARKED BY RESULTS OF SUNDAY MAYORAL ELECTIONS IN 122 ITALIAN CITIES IN WHICH REFORM PARTIES PREVAILED IN REACTION TO A GOVERNMENT CORRUPTION SCANDAL AND MARKET PARTICIPANTS ANTICIPATED SOME INSTABILITY IN GOVERNANCE MADRID PRICES TUMBLED ACROSS THE BOARD AS INVESTORS TOOK PROFITS IN EXPECTATIONS THAT SPAIN'S SOCIALIST GOVERNMENT REELECTED SUNDAY WOULD MAKE ONLY SLOW CUTS IN INTEREST RATES IN ZURICH SHARES GAINED LED BY BANKING ISSUES AS DOMESTIC BUYERS BOUGHT ON HOPES FOR LOWER INTEREST RATES SOON WHILE MANY FOREIGN INVESTORS SELECTIVELY TOOK PROFITS THE HONG KONG MARKET CONSOLIDATED AND SHARES FELL ON PROFITTAKING IN TAIPEI PRICES DROPPED ON NEWS THAT THE TAIWAN GOVERNMENT'S ECONOMYBOOSTING PLAN WHICH MAY BE ANNOUNCED BY THE END OF THIS MONTH PROBABLY WILL FOCUS ON MIDTERM AND LONGTERM DEVELOPMENT A REPORT THAT LEFT INVESTORS DOUBTFUL ABOUT ANY RESULTING SPUR TO THE ECONOMY AND THE MARKET SEOUL STOCKS GAINED ACROSS THE BOARD ON UNSUBSTANTIATED RUMORS AND A HUGE FLOW OF CASH INTO THE MARKET BUYERS FOCUSED ON SMALL ELECTRONICS DRUG AND CHEMICAL ISSUES THE LATTER TWO SECTORS HAVE UPBEAT FIRSTHALF PROSPECTS PARTICIPANTS TRADED ON RUMORS THAT THE SOUTH KOREA GOVERNMENT WILL ANNOUNCE PROGRESS IN ITS STALLED RELATIONSHIP WITH NORTH KOREA AND UNVEIL SWEEPING MEASURES TO HELP INDUSTRIAL COMPETITIVENESS IN MEXICO CITY STOCKS SKIDDED 13 PUSHED DOWN BY WORRIES ABOUT FREE TRADE AND TELEFONOS DE MEXICO EARNINGS VOLUME WAS LIGHT AHEAD OF WASHINGTON TALKS TODAY AND TOMORROW ON SUPPLEMENTAL LABOR AND ENVIRONMENTAL ACCORDS TO THE NORTH AMERICAN FREE TRADE AGREEMENT BETWEEN THE US MEXICO AND CANADA TELMEX ACCOUNTED FOR HALF THE MARKET'S VOLUME AS ANALYSTS REDUCED EARNINGS ESTIMATES FOR THE COMMUNICATIONS GIANT FOR THIS YEAR AND NEXT YEAR TELMEX SERIES L SHARES THOSE AVAILABLE TO FOREIGN INVESTORS LOST 10 CENTAVOS TO 705 NEW PESOS 225 BUT TRADERS EXPECTED THE MARKET TO FIND SUPPORT FROM NEWS THAT TELMEX EXTENDED FOR 140 DAYS A PLANNED 310 MILLION STOCK BUYBACK THAT WAS ANNOUNCED APRIL 29 AMONG CORPORATE DEVELOPMENTS IN LONDON BAA ROSE FIVE PENCE TO 770 PENCE 1162 THE AIRPORT MANAGEMENT COMPANY'S PRETAX PROFIT FOR THE YEAR ENDED MARCH 31 JUMPED 49 TO 285 MILLION 4299 MILLION FROM A YEAR EARLIER EXCEEDING MARKET EXPECTATIONS THE DIVIDEND WAS RAISED 10 TO 16 PENCE A SHARE IN LINE WITH PREVIOUS ESTIMATES IN SINGAPORE KEPPEL BANK'S PUBLIC OFFERING OF 120 MILLION SHARES GOT A LUKEWARM RECEPTION AS THE OFFER PRICE OF 240 TO 250 SINGAPORE DOLLARS US149 TO US155 REPRESENTED 30 TIMES 1992 EARNINGS OF 82 CENTS A SHARE A FAR BIGGER MULTIPLE THAN THE INDUSTRY AVERAGE THE FORMER ASIA COMMERCIAL BANK AND A UNIT OF KEPPEL CORP A CONGLOMERATE WITH MARINE INTERESTS KEPPEL BANK'S OFFERING IS THE FIRST BY A SINGAPORE BANK IN 13 YEARS ANALYSTS QUESTIONED WHETHER KEPPEL STOCK WOULD HOLD AT THE OFFERING PRICE TO RAISE ABOUT S240 MILLION US1486 MILLION DESPITE STRONG EARNINGS THE BANK HAS FORECAST HERE ARE PRICE TRENDS ON THE WORLD'S MAJOR STOCK MARKETS AS CALCULATED BY MORGAN STANLEY CAPITAL INTERNATIONAL PERSPECTIVE GENEVA TO MAKE THEM DIRECTLY COMPARABLE EACH INDEX CALCULATED IN LOCAL CURRENCIES IS BASED ON THE CLOSE OF 1969 EQUALING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9306080085 930608 CORRECTIONS & AMPLIFICATIONS A FEDERAL APPEALS COURT ORDERED A NEW TRIAL ON ONE OF THREE ANTITRUST CLAIMS IN A 1989 LAWSUIT AGAINST COMPUTERVISION CORP BY VIRTUAL MAINTENANCE INC BUT REAFFIRMED ITS ORIGINAL RULING IN FAVOR OF COMPUTERVISION ON TWO OF THE CLAIMS AN ARTICLE YESTERDAY STATED THAT THE COURT HAD ORDERED A NEW TRIAL BUT DIDN'T INDICATE THAT ONLY ONE OF THE THREE CLAIMS WILL BE RECONSIDERED 9306080084 930608 FINANCING BUSINESS KIRBY CORP KIRBY CORP HOUSTON SAID HOLDERS OF THE 50 MILLION AGGREGATE PRINCIPAL AMOUNT OF ITS 725 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2014 WHICH WERE CALLED FOR REDEMPTION ON JUNE 4 ELECTED TO CONVERT THEM INTO COMMON SHARES AT A PRICE OF 11125 A SHARE STANDARD & POOR'S CORP SAID IT WITHDREW ITS TRIPLEBMINUS RATING ON THE ISSUE FOLLOWING THE COMPANY'S DECISION TO REDEEM IT THE MARINE TRANSPORTATION CONCERN SAID THE CONVERSION INCREASED THE ISSUED AND OUTSTANDING COMMON SHARES BY 4494372 AS OF JUNE 4 28148173 SHARES OF COMMON WERE OUTSTANDING 9306080083 930608 S&P MAY BOOST CHRYSLER RATING AID ITS DIVIDEND AUTO MAKER HAS LINKED AN UPGRADING OF DEBT TO INCREASE IN PAYOUT BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL STANDARD & POOR'S CORP SAID IT IS REVIEWING CHRYSLER CORP'S CREDIT RATING WHICH IS ONE NOTCH BELOW INVESTMENT GRADE FOR A POSSIBLE UPGRADE THE ANNOUNCEMENT COMES WEEKS AFTER ROBERT J EATON CHRYSLER'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID AT THE AUTO MAKER'S ANNUAL MEETING THAT A DEBTRATING UPGRADE WAS SOMEWHAT OF A PREREQUISITE TO A DIVIDEND INCREASE AN UPGRADE WOULD TURN UP THE HEAT TO BOOST THE DIVIDEND SAID WENDY NEEDHAM AN ANALYST WITH SMITH BARNEY HARRIS UPHAM & CO CHRYSLER CUT ITS DIVIDEND IN HALF TO 15 CENTS A SHARE IN THE FIRST QUARTER OF 1991 AFTER THE COMPANY'S DEBT WAS DOWNGRADED BY MAJOR CREDIT RATING CONCERNS IN FEBRUARY OF THAT YEAR TO JUNKBOND LEVELS S&P WHICH PLACED CHRYSLER'S CONSOLIDATED 14 BILLION IN DEBT ON CREDITWATCH WITH POSITIVE IMPLICATIONS SAID AN UPGRADE COULD OCCUR WITHIN THE NEXT THREE OR FOUR MONTHS MOODY'S INVESTORS SERVICE INC SAID IT HAS NO IMMEDIATE PLANS FOR REVIEWING CHRYSLER DEBT MOODY'S RATES CHRYSLER TWO NOTCHES BELOW INVESTMENT GRADE AND CHRYSLER FINANCIAL CORP ONE NOTCH BELOW AN INVESTMENTGRADE CREDIT RATING WOULD REDUCE CHRYSLER'S BORROWING COSTS BY AT LEAST 33 MILLION ANNUALLY SAID THOMAS P CAPO CHRYSLER'S TREASURER THE TERMS OF 11 BILLION IN VARIABLERATE BONDS THE AUTO MAKER ISSUED TO FINANCE ITS NEW TECHNICAL CENTER IN SUBURBAN DETROIT WOULD PRODUCE THAT AMOUNT OF SAVINGS IF THE HIGHLAND PARK MICH CONCERN REACHES INVESTMENT GRADE CHRYSLER FINANCIAL'S BORROWING COSTS ALSO WILL BE REDUCED ALTHOUGH THE DEBT MARKETS ALREADY ARE PRICING THOSE DEBTS AT CLOSE TO INVESTMENT GRADE MR CAPO SAID S&P AND MOODY'S UPGRADED CHRYSLER'S DEBT RATING IN JANUARY WHEN THE AUTO MAKER KICKED OFF A STOCK SALE THAT RAISED SLIGHTLY MORE THAN 2 BILLION BUT A RETURN TO INVESTMENTGRADE RATING BY ONE OF THE TWO MAJOR CREDIT CONCERNS WOULD SOLIDIFY CHRYSLER'S COMEBACK IN THE FINANCIAL MARKETS S&P SAID IT IS MOVING TO CONSIDER ANOTHER UPGRADE BECAUSE OF THE AUTO MAKER'S SALES SUCCESS CHRYSLER'S EARNINGS AND CASH FLOW ARE SIGNIFICANTLY EXCEEDING PRIOR EXPECTATIONS DUE LARGELY TO OVERWHELMING SUCCESS WITH NEW PRODUCTS AND STEPS TO ENHANCE OPERATING EFFICIENCY S&P SAID BUT THE CREDIT RATING CONCERN ALSO SAID IT WILL BE WATCHING TO SEE HOW THE COMPANY CONTENDS WITH SEVERAL SIGNIFICANT FINANCIAL CHALLENGES CHRYSLER IS TRYING TO REDUCE ITS 23 BILLION UNFUNDED PENSION LIABILITY BUILD A 5 BILLION CASH CUSHION TO WEATHER THE NEXT RECESSION AND NEGOTIATE A NEW LABOR CONTRACT THIS SUMMER WITH THE UNITED AUTO WORKERS UNION SCOTT SPRINZEN AN ANALYST WITH S&P SAID THE CREDIT CONCERN WILL ALSO BE EXAMINING POSSIBLE QUALITY CONCERNS ABOUT CHRYSLER PRODUCTS WHICH SCORED WELL BELOW MOST MAJOR COMPETITORS IN THE MOST RECENT QUALITY SURVEY BY JD POWER & ASSOCIATES AN AUTO ANALYST CONCERN CHRYSLER SHARES CLOSED YESTERDAY AT 47 UP 375 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9306080082 930608 FINANCING BUSINESS EK CHOR CHINA MOTORCYCLE CO EK CHOR CHINA MOTORCYCLE CO WHICH MANAGES SEVERAL SINOFOREIGN JOINT VENTURES IN MOTORCYCLE AND MACHINERY MANUFACTURING SAID IT PLANS AN INITIAL PUBLIC OFFERING OF ABOUT 44 MILLION SHARES THE COMPANY SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION COVERING THE OFFERING WITH AN EXPECTED PRICE OF 16 TO 18 A SHARE EK CHOR CHINA MOTORCYCLE SAID 36 MILLION OF THE NEW SHARES WILL BE ISSUED BY THE COMPANY AND 788000 SHARES ARE BEING SOLD BY CP POKPHAND CO A THAI INDUSTRIAL COMPANY WHICH OWNS 98 OF EK CHOR FOLLOWING THE OFFERING POKPHAND WILL OWN ABOUT 72 OF EK CHOR THE OFFERING IS BEING MANAGED BY BEAR STEARNS & CO THE COMPANY IS SEEKING TO LIST THE SHARES ON THE NEW YORK STOCK EXCHANGE 9306080081 930608 ECONOMY CONSUMER DEBT ROSE 23 BILLION IN APRIL BIT LESS THAN MARCH WASHINGTON AMERICANS INCREASED THEIR DEBT BY 23 BILLION IN APRIL A LITTLE LESS THAN THE MARCH RISE THE FEDERAL RESERVE SAID THE APRIL INCREASE AT AN ANNUAL RATE OF 36 FOLLOWED A 296 BILLION RISE IN MARCH OR A 47 ANNUAL RATE IT WAS THE NINTH STRAIGHT MONTHLY INCREASE THOUGH THE PACE HAS SLACKENED SINCE FEBRUARY'S 457 BILLION A 74 ANNUAL RATE THE FIGURES ARE IN LINE WITH RECENT REPORTS OF INCREASES IN PERSONAL CONSUMPTION AND WEAK GROWTH IN INCOME REVOLVING DEBT WHICH INCLUDES CREDIT CARDS INCREASED AT THE QUICKEST PACE RISING 163 BILLION OR A 75 ANNUAL RATE THE SAME RATE AS IN MARCH AUTOMOBILE CREDIT ROSE 419 MILLION OR AN ANNUAL RATE OF 19 TRAILING THE 23 PACE OF MARCH A CATCHALL CATEGORY THAT INCLUDES LOANS FOR SCHOOL TUITION TAXES AND MOBILE HOMES EXPANDED 226 MILLION OR A 12 ANNUAL RATE COMPARED WITH THE 44 MARCH RATE ALL THE FIGURES ARE ADJUSTED FOR SEASONAL VARIATIONS HERE ARE THE SEASONALLY ADJUSTED TOTALS OF CONSUMER INSTALLMENT CREDIT OUTSTANDING FOR APRIL IN BILLIONS AND PERCENTAGE CHANGES FROM MARCH AT AN ANNUAL RATE 9306080079 930608 FINANCING BUSINESS AMVESTORS FINANCIAL CORP AMVESTORS FINANCIAL CORP TOPEKA KAN SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN OFFERING OF 10 MILLION COMMON SHARES THE OFFERING BY THE INSURANCE HOLDING COMPANY AND ITS CONVERTIBLE PREFERRED STOCKHOLDERS WILL BE FOUR MILLION COMMON SHARES AFTER ADJUSTMENT FOR A 1FOR25 REVERSE STOCK SPLIT EFFECTIVE JUNE 11 AFTER THE OFFERING AND THE REVERSE SPLIT THE COMPANY WILL HAVE 10 MILLION SHARES OUTSTANDING THE COMPANY SAID AMVESTORS SAID ITS SHARE OF THE PROCEEDS WILL BE USED TO REPAY ALL BANK DEBT OUTSTANDING AND FOR OTHER CORPORATE PURPOSES SALOMON BROTHERS INC AND KIDDER PEABODY & CO THE MANAGING UNDERWRITERS FOR THE OFFERING WILL HAVE AN OPTION TO PURCHASE AS MANY AS 15 MILLION SHARES 600000 AFTER THE REVERSE SPLIT TO COVER OVERALLOTMENTS 9306080078 930608 BUSINESS BRIEF WARBURG PINCUS DROPS OFFER TO BUY 26 STAKE IN UNIVA FROM UNIGESCO EM WARBURG PINCUS & CO CALLED OFF ITS OFFER TO ACQUIRE A 26 STAKE IN UNIVA INC LEAVING THE FATE OF QUEBEC'S LARGEST SUPERMARKET CHAIN UP IN THE AIR WARBURG PINCUS A CLOSELY HELD NEW YORK INVESTMENT FIRM AGREED IN APRIL TO PURCHASE THE STAKE IN UNIVA FROM UNIGESCO INC A HARDWAREDISTRIBUTION CONCERN THAT IS UNIVA'S PRINCIPAL SHAREHOLDER FOR 885 CANADIAN DOLLARS US689 A SHARE OR ABOUT C200 MILLION THE TRANSACTION IS BELIEVED TO HAVE FOUNDERED OVER UNIGESCO'S RELUCTANCE TO ACCEPT A CUT IN THE PRICE WARBURG PINCUS WAS TO HAVE PAID FOR THE SHARES IN RECENT WEEKS UNIVA HAS BEEN TRADING AT AROUND C750 A SHARE WELL BELOW THE WARBURG PINCUS OFFER IN TRADING ON THE TORONTO STOCK EXCHANGE YESTERDAY UNIVA SHARES CLOSED AT C725 DOWN 25 CANADIAN CENTS IN A BRIEF NEWS RELEASE UNIGESCO SAID IT HAS INITIATED NEGOTIATIONS WITH UNIDENTIFIED QUEBEC INSTITUTIONS WITH THE INTENT OF SELLING ITS UNIVA SHARES UNIGESCO OFFICIALS DECLINED TO COMMENT FURTHER AND WARBURG PINCUS OFFICIALS COULDN'T BE REACHED CAISSE DE DEPOT ET PLACEMENT DU QUEBEC THE PROVINCE'S POWERFUL PUBLIC PENSION FUND MANAGER WHICH HOLDS A 135 STAKE IN UNIVA COULDN'T BE REACHED FOR COMMENT A PREVIOUS OFFER BY BLACKSTONE GROUP LP OF NEW YORK TO ACQUIRE UNIGESCO'S STAKE IN UNIVA AS PART OF A C16 BILLION BID FOR ALL OF THE SUPERMARKET OPERATOR'S SHARES WAS CALLED OFF AFTER CAISSE INDICATED IT WAS OPPOSED TO THE PLAN UNIGESCO HAS BEEN SEEKING TO SELL ITS UNIVA STAKE TO RAISE CASH TO MEET DEBTRETIREMENT OBLIGATIONS LAST MONTH IT ASKED HOLDERS OF C443 MILLION OF DEBENTURES TO REFRAIN FROM REDEEMING THEIR HOLDINGS UNTIL OCTOBER TO ALLOW THE WARBURG PINCUS TRANSACTION TO BE COMPLETED THE ISSUE DUE JUNE 16 IS PART OF C627 MILLION IN DEBT THAT UNIGESCO MUST RETIRE THIS MONTH INVESTMENT INDUSTRY SOURCES SAY CAISSE PROBABLY WILL EMERGE WITH A NEW PLAN FOR UNIVA'S FUTURE ONE THAT WILL ENSURE THAT MAJORITY OWNERSHIP OF UNIVA REMAINS IN QUEBEC BERTIN NADEAU CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF UNIGESCO IS SAID TO HAVE SOUGHT CAISSE'S FINANCIAL ASSISTANCE LAST YEAR ONLY TO BE REBUFFED BOTH UNIVA AND UNIGESCO ARE BASED IN MONTREAL 9306080077 930608 BUSINESS BRIEF SCOTT'S HOSPITALITY INC COMPANY TO SELL BLACK PHOTO TO FUJI PHOTO CANADA UNIT SCOTT'S HOSPITALITY INC SAID IT AGREED TO SELL BLACK PHOTO CORP TO FUJI PHOTO FILM CANADA INC FOR 65 MILLION CANADIAN DOLLARS US508 MILLION BLACK PHOTO OPERATES A CHAIN OF ABOUT 200 PHOTOGRAPHY STORES IN CANADA IT HAD AN OPERATING PROFIT OF C58 MILLION FOR THE YEAR ENDING APRIL 30 1992 ON SALES OF C123 MILLION SCOTT'S HOSPITALITY IS A TORONTO FOOD SERVICES TRANSPORTATION HOTELS AND PHOTOGRAPHY CONCERN SCOTT'S SAID THE SALE IS EXPECTED TO CLOSE JUNE 28 FUJI PHOTO FILM CANADA IS OWNED BY FUJI PHOTO FILM CO OF JAPAN 9306080076 930608 ENTERPRISE FOCUS ON FRANCHISING DISCOVERY ZONE TRIES TO GROW QUICKLY IN UNUSUAL WAY BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL DISCOVERY ZONE PLANS A BIG EXPANSION WITHOUT NEW FRANCHISEES MANY FRANCHISERS TRY TO GIVE PREFERRED FRANCHISEES AS MANY OUTLETS AS POSSIBLE BUT FEW CARRY THE EFFORT AS FAR AS DISCOVERY ZONE INC A CHICAGO FRANCHISER OF INDOOR PLAYGROUNDS FOR YOUNG CHILDREN PLANS TO DO LAST FRIDAY PUBLIC INVESTORS SNAPPED UP A 15 STAKE IN DISCOVERY ZONE THE FINANCING WILL HELP THE CHAIN TO EXPAND QUICKLY BUT THE COMPANY HAS STOPPED SEEKING NEW FRANCHISEES WHILE COUNTING ON TWO WELLHEELED ONES TO OPEN MANY MORE UNITS THOSE COMPANIES ARE BLOCKBUSTER ENTERTAINMENT CORP AND TUMBLE FOR FUN LP BLOCKBUSTER ALREADY A MINORITY HOLDER HAS OPTIONS TO BUY MORE STOCK POSSIBLY ENOUGH TO BECOME DISCOVERY ZONE'S PARENT THE CHAIN AIMS FOR ABOUT 400 UNITS BY THE END OF 1994 UP FROM 74 CURRENTLY WHICH INCLUDES 61 FRANCHISED UNITS RUN BY ABOUT 40 FRANCHISEES ITS STOCK WHICH CAME OUT AT 22 A SHARE HAS SOARED MORE THAN 60 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY THE SHARES CLOSED AT 3550 A SHARE UNCHANGED MEANWHILE SOME PEOPLE WHO BECAME EARLY FRANCHISEES SAY IT HAS BEEN NO FUN TO OWN FUNCENTERS IN KANSAS CITY MO FRANCHISEE BSR ENTERTAINMENT INC SAYS IT HAS STOPPED PAYING ROYALTIES AND IS NEGOTIATING TO QUIT THE CHAIN AND OPERATE AS AN INDEPENDENT WE GET NOTHING FOR WHAT WE PAY IN ROYALTIES SAYS BRET S REIN VICE PRESIDENT CONCEDING THAT THERE ARE SOME UNHAPPY FRANCHISEES DISCOVERY ZONE OFFICIALS BLAME PREVIOUS MANAGEMENT GO EASY ON FRANCHISING A FEDERALLY FUNDED STUDY URGES LAWMAKERS UNCLE SAM AND THE STATES SHOULD AVOID EXTENSIVE REGULATION OF FRANCHISING RELATIONSHIPS SAYS THE STUDY WHICH SEVERAL CONSULTANTS PREPARED FOR THE SMALL BUSINESS ADMINISTRATION FRANCHISE CHAINS' SALES WILL KEEP GROWING THROUGH THE 1990S UNLESS THERE IS A MAJOR AND PROLONGED RECESSION OR UNLESS REGULATORY CURBS REDUCE THE INCENTIVE FOR ENTERING FRANCHISE RELATIONSHIPS THE STUDY SAYS THE STUDY EMPHASIZES THE GROWING ROLE OF FRANCHISING IN THE ECONOMY THE AUTHORS PULLED TOGETHER DATA PREVIOUSLY PUBLISHED BY OTHERS IN TAKING A BROAD STAND AGAINST WIDER GOVERNMENT REGULATION OF FRANCHISING THE REPORT GLADDENS FRANCHISERS' LOBBYISTS THIS REPORT WILL BE HELPFUL SAYS NEIL A SIMON A WASHINGTON LAWYER FOR FRANCHISERS WHICH ARE FIGHTING NEW FRANCHISING BILLS IN CONGRESS AND SEVERAL STATES PROPONENTS OF THE PROPOSED LAWS ARE CERTAIN TO RAISE QUESTIONS ABOUT THE REPORT'S SOURCES AND BALANCE HOWEVER ONE AUTHOR ANDREW KOSTECKA ALSO HAS DONE WORK FOR THE INTERNATIONAL FRANCHISE ASSOCIATION THE BIGGEST FRANCHISER TRADE GROUP AND THE REPORT UNCRITICALLY ACCEPTS A 1992 GALLUP ORGANIZATION FRANCHISING STUDY SPONSORED BY THE IFA FRANCHISEE ADVOCATES ATTACKED THE GALLUP STUDY PARTLY BECAUSE IT DIDN'T INCLUDE DROPOUTS FROM FRANCHISING GALLUP HAS DEFENDED ITS STUDY BITING THE HAND THAT FED ITS AUTHORS THE NEW REPORT ALSO KNOCKS THE SBA PEOPLE IN FRANCHISING SEE THE AGENCY'S LOAN PROCESS AS LONG AND ARDUOUS THE STUDY NOTES A FEDERAL WATCHDOG ATTACKS A FEW MORE FRANCHISERS FRANCHISEES AND THEIR ADVOCATES HAVE BEEN BITTERLY CRITICAL OF ALLEGEDLY SLOW ENFORCEMENT AT THE FEDERAL TRADE COMMISSION BUT A FLURRY OF ACTIVITY SUGGESTS THAT THE WATCHDOG IF IT EVER WAS NAPPING MAY BE WAKING UP YOU ARE STARTING TO SEE THE FRUITS OF EFFORTS THAT HAVE BEEN UNDER WAY FOR SOME TIME AND WILL CONTINUE SAYS EILEEN HARRINGTON ASSOCIATE DIRECTOR OF THE FTC'S BUREAU OF CONSUMER PROTECTION LAST WEDNESDAY FEDERAL COURTS IN CHICAGO AND DALLAS APPROVED SETTLEMENTS BETWEEN THE FTC AND TWO WELLKNOWN FRANCHISERS GINGISS INTERNATIONAL INC AND SNELLING & SNELLING INC AND LAST FRIDAY IN FEDERAL COURT IN BROOKLYN NY THE FTC FILED CHARGES AGAINST MINUTEMAN PRESS INTERNATIONAL INC AND THAT COMPANY'S SPEEDY SIGNARAMA USA INC UNIT GINGISS A CHICAGO OPERATOR AND FRANCHISER OF FORMALWEAR RENTAL SHOPS SETTLED CHARGES THAT IT HAD MISREPRESENTED THE EARNINGS CAPACITY OF ITS FRANCHISED STORES GINGISS AGREED TO PAY A 25000 CIVIL PENALTY AND TO REFRAIN FROM FRANCHISERULE VIOLATIONS IN THE FUTURE SNELLING A DALLAS FRANCHISER OF TEMPORARYEMPLOYMENT SERVICES SETTLED COMPARABLE CHARGES AGREEING TO PAY 100000 EARMARKED FOR INJURED FRANCHISEES AND TO REFRAIN FROM FUTURE FRANCHISERULE VIOLATIONS NEITHER GINGISS NOR SNELLING ADMITTED TO FEDERALLAW VIOLATIONS THE FTC'S SUIT AGAINST MINUTEMAN AND SIGNARAMA ALSO INVOLVES ALLEGEDLY DECEPTIVE CLAIMS ABOUT THE EARNINGS POTENTIAL OF FRANCHISES MINUTEMAN IN FARMINGDALE NY DIDN'T RETURN CALLS SEEKING COMMENT A FORMER FRANCHISEE PICKETS A FRANCHISER OVER A NOCOMPETE CLAUSE INCREASINGLY DISGRUNTLED FRANCHISEES COMPLAIN THAT FRANCHISE CONTRACTS ARE UNFAIR SUCH FRANCHISEES OFTEN GET LITTLE SYMPATHY FROM THE JUDICIAL SYSTEM AFTER ALL THEY DID SIGN THEIR CONTRACTS BUT SOME HOPE TO EMBARRASS FRANCHISERS INTO MAKING CONCESSIONS OPTICIAN STEVE WOLYNSKI IN NEW YORK TRIED THAT TACTIC LAST WEEK IN AN EFFORT TO PRESSURE FRANCHISER PEARLE VISION INC A DALLAS UNIT OF GRAND METROPOLITAN PLC INTO DROPPING ITS DEMAND THAT HE ABIDE BY A NOCOMPETE AGREEMENT AFTER LOSING A ROUND IN A DISPUTE IN FEDERAL COURT IN MANHATTAN NY MR WOLYNSKI TOOK TO THE STREETS TO PICKET A PEARLE VISION CENTER NOW FRANCHISEROWNED HE HAD RUN THE CENTER FOR 11 YEARS AS A FRANCHISEE PEARLE'S FRANCHISE CONTRACTS BAR FORMER FRANCHISEES FOR ONE YEAR FROM OPERATING A COMPETITIVE BUSINESS WITHIN A FIVEMILE RADIUS OF THE FRANCHISE MR WOLYNSKI SAYS HE HAD BEEN MANAGING AN INDEPENDENT OPTICAL SHOP SITUATED INSIDE THE FORBIDDEN ZONE BUT IN HIS VIEW NO ACTUAL THREAT TO THE PEARLE UNIT TWO MILES AWAY LAST MONTH PEARLE WON A PRELIMINARY COURT ORDER BARRING HIM FROM WORKING AT THE INDEPENDENT SHOP IN ANY ROLE MR WOLYNSKI SAYS HE DOESN'T MIND THAT PEARLE IS SUING HIM FOR MORE THAN 170000 THAT HE ALLEGEDLY OWES HE CONCEDES THAT HE DIDN'T PAY FULL RENT OR ROYALTIES THOUGH HE CLAIMS THAT PEARLE TOLD HIM THAT WOULD BE ALL RIGHT BUT TO PREVENT ME FROM WORKING THAT'S UNCONSCIONABLE HE ADDS ATTORNEY DAVID J KAUFMANN WHO REPRESENTS PEARLE SAYS THE NOCOMPETE CLAUSE IS A REASONABLE MEASURE TO PROTECT PEARLE'S INTERESTS AND WAS TWICE AGREED TO BY MR WOLYNSKI THE FORMER FRANCHISEE REMINDS ME OF A CHILD WHO SHOOTS HIS PARENTS DEAD AND THEN PLEADS FOR THE COURT'S MERCY AS AN ORPHAN MR KAUFMANN ADDS 9306080075 930608 BUSINESS BRIEF FORD MOTOR CO EXPLORERS MAZDA NAVAJOS GET RECALL FOR BATTERY WORK FORD MOTOR CO IS RECALLING 344000 FORD EXPLORERS FROM THE 1991 MODEL YEAR TO INSPECT A POSSIBLE BATTERY DEFECT THAT COULD PREVENT THE VEHICLE FROM STARTING MAZDA MOTOR CORP SAID IT IS ISSUING A SIMILAR RECALL FOR 14663 1991 MODELYEAR MAZDA NAVAJOS FORD BASED IN DEARBORN MICH BUILDS THE EXPLORER AND NAVAJO SPORT UTILITY VEHICLES AT ITS LOUISVILLE KY ASSEMBLY PLANT FORD AND MAZDA SAID BATTERY ACID MIST MIGHT BE RELEASED FROM THE VEHICLES POSSIBLY DAMAGING THE ENGINE AND PREVENTING THE VEHICLES FROM STARTING FORD AND MAZDA DEALERS WILL INSTALL BATTERY COVERS ON THE VEHICLES AND MAKE REPAIRS IF NECESSARY TO THE BATTERY AT NO CHARGE 9306080074 930608 LEISURE & ARTS BOOKSHELF RMS RV VU FLATS IN GOTHAM BY MANUELA HOELTERHOFF FEELING THE NEED FOR SOME COUNTRY AIR ANDREW CARNEGIE MOVED HIMSELF TO A NEW PALAZZO ON FIFTH AVENUE AND 91ST STREET IN 1901 CLOSE TO HONKING GEESE AND NIBBLING GOATS ANYONE FAMILIAR WITH MANHATTAN TODAY CAN ONLY LAUGH AT THE THOUGHT NOWADAYS YOU COULD USE A GAS MASK AND A CAN OF MACE JOGGING IN CENTRAL PARK ON THE OTHER SIDE OF FIFTH AND NOBODY NOT EVEN TYCOONS LIVES IN PRIVATE HOUSES SO HUGE THEY LOOK LIKE MUSEUMS WHICH IS IN FACT WHAT BECAME OF CARNEGIE'S MODEST ROOMY HOUSE AS HE CALLED IT WHEN IT WAS RECYCLED INTO THE COOPERHEWITT SOME 70 YEARS LATER MANHATTAN TYCOONS AND MOST OF THE REST OF US NOW LIVE IN APARTMENT BUILDINGS CONTINUING A SOCIAL AND ARCHITECTURAL REVOLUTION THAT ELIZABETH HAWES DESCRIBES SO APPEALINGLY IN THE CUMBERSOMELY TITLED NEW YORK NEW YORK HOW THE APARTMENT HOUSE TRANSFORMED THE LIFE OF THE CITY 18691930 KNOPF 285 PAGES 30 AT THE BEGINNING OF HER STORY NEW YORK IS STILL A FLAT AND FOLKSY PLACE DOMINATED BY SINGLE FAMILY DWELLINGS APARTMENT HOUSES WERE FROWNED UPON PROPER PEOPLE DIDN'T MINGLE WITH PEOPLE THEY DIDN'T KNOW WHO MIGHT BE SOCIALISTS WITH GERMS AND BAD MANNERS THE WORKING POOR LIVED IN TENEMENTS BACHELORS AND THE MORE ADVENTUROUS GATHERED IN FRENCH FLATS SOCALLED TO SUGGEST THE SUSPICIOUS RACINESS OF COMMUNAL LIVING BUT JUST TWO GENERATIONS LATER APARTMENT LIFE HAD BECOME SO ABSOLUTELY GLAMOROUS A REGULAR COLUMN SIGNED PENTHOUSE OR DUPLEX BEGAN APPEARING IN THE NEW YORKER MAGAZINE THE SPIRALING COST OF LIVING THE NEED FOR SERVANTS TO MAINTAIN THE REGIMEN OF ROW HOUSE LIVING THE ADDED BURDEN OF THE INCOME TAX AFTER 1913ALL COLLABORATED WITH AMBITIOUS DEVELOPERS TO MAKE THE APARTMENT HOUSE AN INCREASINGLY ATTRACTIVE PROPOSITION MS HAWES EXPLAINS NOTING SOMEWHAT REGRETFULLY THE INEVITABILITY OF THE VERTICAL LIFE IN AN ISLAND TOWN EDGED BY WATER EVEN MRS HUTTON WIFE OF THE FABULOUSLY WEALTHY EF GRUDGINGLY GAVE IN TO FASHION IN THE MIDTWENTIES AFTER AN INSISTENT BUILDER PROMISED TO RECREATE HER RAMBLING MANSION AT THE TOP OF THE APARTMENT HOUSE RISING ON THE SITE OF HER DEMOLISHED HOMESTEAD HAVING HOISTED THE LAST OF 10 FIREPLACES UPSTAIRS SHE CLIPPED HER COUPONS IN A 54ROOM APARTMENT THAT HOLDS THE LOCAL LARGENESS RECORD THE SPEED WITH WHICH LARGE CHUNKS OF NEW YORK DISAPPEARED IS SOMETHING TO BEHOLD EUROPEANS ASSOCIATE SUCH CHANGE WITH MASSIVE BOMBING BUT IN NEW YORK IT WAS LARGELY A FUNCTION OF REAL ESTATE PRESSURE ON AN INFLEXIBLE SPACE COMBINED WITH THE CASUAL DISREGARD FOR HISTORY STILL KEEPING THE BULLDOZERS ROLLING TODAY MOST OF THE MANSIONS DEPICTED IN NEW YORK NEW YORK RESIDENCES SIZED LIKE VERSAILLES BUT WITH NICE BATHROOMS JOINED MRS HUTTON'S IN THE PHOTO ARCHIVES MS HAWES'S SAGA IS AS MUCH AN EVOCATION OF THE GILDED AGE AS A CHRONICLE OF THE MODERN ERA THAT REPLACED IT EVEN THE VANDERBILT MANSION WASN'T SPARED THOUGH NO OTHER HOUSE EVER PROVOKED SO MUCH ASTONISHMENT FINISHED IN 1883 IT GAVE NEW CURRENCY TO THE PHRASE MY HOME IS MY CASTLE ARCHITECT RICHARD MORRIS HUNT MODELED IT ON FRANCOIS I'S CHATEAU AT BLOIS OLD NEW YORK WAS PRETTY APPALLED AT THE SIGHT OF IT UNTIL THE VANDERBILT BEHEMOTH EVEN THE WELLTODO LIVED QUITE MODESTLY IN UNASSUMING BROWNSTONES THE BROWNNESS DERIVED FROM A VAST PIT OF BUILDING MATERIAL DISCOVERED IN THE FIELDS OF NEW JERSEY MS HAWES'S TEXT IS ORNAMENTED WITH MANY USEFUL FACTS AT LEAST THE CASTLE LOOK OF VANDERBILT'S HOUSE LIVED ON IN THE GROWING ASSORTMENT OF PALATIAL HIGHRISES TOPPED OFF BY NORMAN TURRETS GOTHIC SPIRES FRENCH MANSARDS MOST BORE AMUSING BRITISH NAMES LIKE THE BERESFORD ARMS THAT WERE MEANT TO IMPART A LINEAGE OF DISTINCTION TO THEIR RESIDENTS A CONCEPT NOT FULLY ABSORBED BY THE BEFUDDLED BUILDER OF MY NEORENAISSANCE HIGHRISE THE MYRON PALACE WHICH HONORS I AM TOLD A FAVORITE UNCLE OVERCOME BY THE MOTLEY ARRAY OF OLD EUROPEAN STYLES ALL CHEERFULLY MIXED TOGETHER EDITH WHARTON ONCE WROTE WRILY OF BUILDINGS THAT PROVIDED HER WITH FULL ARCHITECTURAL MEALS SENSITIVE HENRY JAMES THOUGH JUST GOT A BAD CASE OF INDIGESTION WANDERING THROUGH A WEST SIDE STREET WHERE TALL AND SMALL STOOD TOGETHER IT REMINDED HIM HE SAID OF A COLOSSAL HAIRCOMB WITH LOTS OF BROKEN TEETH THE EPHEMERAL NATURE OF NEW YORK MADE THE VISITING EXPAT NERVOUS AND JAMES WASN'T EVEN STANDING OUTSIDE THE FUTURE ANSONIA WHEN DRILLING STARTED FOR 400 BATHS AND 600 EXTRA TOILETS FOR 2500 ROOMS NO WONDER MS HAWES COMPARES THE NOISY BUILDING FRENZY THAT SEIZED NEW YORK IN THE EARLY 1900S TO THE COLLISION OF CONTINENTS AND THE BIRTH OF MOUNTAIN RANGES AT THE SAME TIME SHREWD OBSERVERS COULD NOTICE ANOTHER SEISMIC SHIFT TAKING PLACE IN THE SOCIAL REALM THAT GREATLY BOOSTED THE POPULARITY OF APARTMENT LIVING WOMEN LIKED APARTMENTS PARTICULARLY YOUNG WOMEN WHO WISHED TO LIVE INDEPENDENTLY AND MARRIED ONES FED UP WITH KEEPING HOUSE IT IS RIGHT QUITE RIGHT THAT MAN WOMAN AND CHILD SHOULD DEMAND SOMETHING MORE THAN HOME LIFE ANNOUNCED COSMOPOLITAN MAGAZINE EVEN THEN A SEDITIOUS FORCE BUT THE ERA OF THE LUXURY HIGHRISE FADED WITH THE DEPRESSION AND THE RISE OF MODERNISM WHICH MADE OPULENCE A CRIME BUILDINGS GOT UGLIER AND HIGHER APARTMENTS GOT SMALLER AND SMALLER AS NEW YORKERS STUCK IN MODERN DAY LUXURY ONE BEDROOMS THE SIZE OF MRS HUTTON'S SPECIAL GOWN CLOSET KNOW ONLY TOO WELL 9306080073 930608 YOUR MONEY MATTERS LEASING PARTNERSHIPS OFFER FAT YIELDS AND TAX BREAKS BUT PITFALLS ABOUND BY KAREN SLATER DAMATO STAFF REPORTER OF THE WALL STREET JOURNAL EQUIPMENTLEASING PARTNERSHIPS CAN LOOK LIKE A GREAT DEAL TO YIELDSTARVED INVESTORS ANNUAL DISTRIBUTIONS AT THE OUTSET ARE TYPICALLY 10 OR 11 AND MAY GO EVEN HIGHER AND INVESTORS CAN DEFER FOR YEARS THE TAX ON MUCH OF THAT MONEY BECAUSE OF DEPRECIATION WRITEOFFS THAT'S PRETTY ATTRACTIVE SAYS DOUGLAS S ALTABEF A VICE PRESIDENT AND MARKETING DIRECTOR AT PAINEWEBBER INC WHO POINTED OUT THAT PRESIDENT CLINTON'S BUDGET PROPOSAL WOULD RAISE THE TOP TAX RATE TO 396 INDEED INVESTORS SNAPPED UP ABOUT 130 MILLION OF LEASING PARTNERSHIPS DURING THE FIRST THREE MONTHS OF THIS YEAR ACCORDING TO FIGURES COMPILED BY ROBERT A STANGER & CO A SHREWSBURY NJ FIRM THAT PROVIDES RESEARCH AND ADVISORY SERVICES TO THE PARTNERSHIP INDUSTRY BUT LEASING PARTNERSHIPS WHICH BUY SUCH GEAR AS RAIL CARS AND COMPUTERS AND THEN LEASE IT TO BUSINESS USERS ALSO HAVE SOME PITFALLS ALTHOUGH THESE INVESTMENTS ARE OFTEN SOLD AS ALTERNATIVES TO BONDS AND BANK CERTIFICATES OF DEPOSIT THERE ARE SOME SIGNIFICANT DIFFERENCES LIKE OTHER PARTNERSHIPS THESE SEVENTO15YEAR SECURITIES ARE HIGHLY ILLIQUID MEANING THAT ONCE YOU'VE BOUGHT IN IT'S TOUGH TO UNLOAD THEM ALTHOUGH THE DISTRIBUTIONS CAN INDEED BE HEFTY INVESTORS MAY GET BACK ONLY HALF OR EVEN A MUCH SMALLER FRACTION OF THEIR ORIGINAL INVESTMENT WHEN THE PARTNERSHIP IS FINALLY DISSOLVED BECAUSE THE EQUIPMENT DECLINES IN VALUE A LOT OF TIMES PEOPLE THINK THEY ARE GOING TO GET THIS YIELD AND THEN GET THEIR MONEY BACK WHICH TYPICALLY ISN'T THE CASE SAYS SPENCER JEFFERIES OF PARTNERSHIP PROFILES INC A DALLAS PARTNERSHIPRESEARCH CONCERN BEVY OF PROBLEMS MORE IMPORTANT THE PERFORMANCE OF MANY EARLIER EQUIPMENTLEASING PARTNERSHIPS HAS BEEN DISTINCTLY UNDERWHELMING MANY HAVE CUT THEIR DISTRIBUTIONS DURING THE PAST FEW YEARS BECAUSE OF A BEVY OF PROBLEMS AMONG THEM A RECESSIONARY DROP IN THE DEMAND FOR EQUIPMENT AND LOWER LEASE RATES IN A LOWER INTERESTRATE ENVIRONMENT A NUMBER OF LEASING PARTNERSHIPS FORMED IN THE LATE 1970S AND IN THE 1980S HAVE COMPLETED OPERATIONS WITHOUT INVESTORS GETTING BACK IN TOTAL EVEN AS MUCH MONEY AS THEY HAD PUT IN SOME OF THE PEOPLE SELLING THEM SAY TODAY'S PARTNERSHIP OFFERINGS ARE LIKELY TO DO BETTER THAN SOME OLDER ONES AND ALSO MAKE SENSE AS A HEDGE IN A DIVERSIFIED INVESTMENT PORTFOLIO IF INTEREST RATES AND INFLATION CLIMB FROM CURRENT LEVELS THEY SAY LEASE RATES AND THE RESIDUAL VALUE USED EQUIPMENT COMMANDS AT SALE WOULD GET A BOOST INVESTING A SMALL PORTION OF A PORTFOLIO IN EQUIPMENT LEASING IS A WAY TO HEDGE AGAINST RISING INTEREST RATES HEDGE AGAINST INFLATION AND GET GOOD HIGH CASH FLOW SAYS ERNEST M BERGMAN NATIONAL SALES MANAGER OF PHOENIX LEASING INC IN SAN RAFAEL CALIF BUT SOME OTHERS SEE A FUNDAMENTAL PROBLEM WITH LEASING PARTNERSHIPS TO SIGN UP EQUIPMENT USERS THE PARTNERSHIPS MUST QUOTE LOWER LEASE RATES THAN THE BIG BANKS AND CORPORATIONS ALSO SEEKING THE BUSINESS SAYS THOMAS G HINIKER PRESIDENT OF AIRFUND CORP AN AIRCRAFT LEASING CONCERN IN LEXINGTON MASS THAT MEANS PROFIT MARGINS ARE APT TO BE SMALL WHATEVER PROFITS THERE ARE MUST BE SHARED WITH THE PARTNERSHIP SPONSOR MEANWHILE A CHUNK OF THE MONEY INVESTORS PUT IN GOES TO PAY BIG COMMISSIONS TO BROKERS FOR SELLING PARTNERSHIP UNITS IT IS VERY UNLIKELY AN INVESTOR IN ANY OF THESE PARTNERSHIPS IS GOING TO DO VERY WELL MR HINIKER SAYS COMPLETED PROGRAMS ONLY A LIMITED NUMBER OF LEASING PARTNERSHIPS HAVE GOTTEN TO THE END OF THEIR LIVES AND SOLD OFF THEIR HOLDINGS BUT OF 24 COMPLETED LEASING PROGRAMS INCLUDED IN A RECENT SURVEY BY STANGER 11 PARTNERSHIPS PAID INVESTORS LESS IN TOTAL THAN THEIR ORIGINAL INVESTMENT ON AVERAGE INVESTORS IN THOSE 24 PROGRAMS RECEIVED 970 IN TOTAL DISTRIBUTIONS FOR EACH 1000 INVESTED THE AVERAGE PAYOUT WAS A SLIGHTLY HIGHER 1044 WHEN FIGURING IN THE TAX BENEFITS DELIVERED BY SOME OF THE PARTNERSHIPS AND THE TAXES DUE ON THE INCOME OF OTHERS ACCORDING TO THE STANGER FIRM AS MORE PROGRAMS ARE WRAPPED UP IN COMING YEARS YOU ARE GOING TO FIND THEY HAVEN'T BEEN THAT GREAT PREDICTS DENNIS J TIETZ PRESIDENT OF CRONOS CAPITAL CORP ONE OF THE FEW LEASING SPONSORS THAT HAVE RACKED UP A STRONG RECORD IN PARTICULAR MR TIETZ PREDICTS THAT RESIDUAL VALUES ARE GOING TO BE A LOT WORSE THAN PEOPLE ANTICIPATED AS IS THE CASE WITH OTHER PARTNERSHIPS LEASING PROGRAMS WERE NEVER DESIGNED TO BE TRADED SECURITIES BUT SOME UNITS OF OLDER PARTNERSHIPS DO CHANGE HANDS IN AN INFORMAL LOWVOLUME RESALE MARKET A LOOK AT A FEW OF THE FIVE LEASING PROGRAMS IN THIS NEWSPAPER'S CONTINUING SURVEY OF RESALE PRICES PROVIDES FURTHER INSIGHTS INTO THE LEASING PARTNERSHIPS THE ONE CLEAR SUCCESS STORY IN THE GROUP IS IEA MARINE CONTAINER INCOME FUND III SPONSORED BY MR TIETZ'S FIRM WHICH WAS PREVIOUSLY CALLED INTERMODAL EQUIPMENT ASSOCIATES THE 1981 PARTNERSHIP WHICH OWNS METAL SHIPPING CONTAINERS HAS BENEFITED FROM A LONG BOOM IN CONTAINERIZED SHIPPING WORLDWIDE INVESTORS HAVE RECEIVED ALMOST 1600 IN DISTRIBUTIONS FOR EACH 1000 INVESTED AND THE MOST RECENT PAYOUT WAS AT AN IMPRESSIVE 14 ANNUALIZED RATE PHOENIX LEASING CASH DISTRIBUTION FUND II A HIGHTECHNOLOGY PROGRAM CUT ITS DISTRIBUTION TO 4 FROM 15 EARLIER THIS YEAR AFTER BEING HIT BY PROBLEMS INCLUDING PLUMMETING COMPUTER PRICES AND LESSEE DEFAULTS INVESTORS WILL PROBABLY GET BACK BETWEEN 90 AND 100 OF WHAT THEY INVESTED SAYS PHOENIX'S MR BERGMAN PROBABLY THE MOST TROUBLED PROGRAM IN THE GROUP IS POLARIS AIRCRAFT INCOME FUND II RUN BY A UNIT OF GENERAL ELECTRIC CO THE CURRENT DISTRIBUTION RATE IS JUST 3 DOWN FROM AS HIGH AS 13 A FEW YEARS AGO AIRCRAFT PROGRAMS HAVE BEEN BATTERED BY THE COLLAPSE OF SEVERAL AIRLINES AND A RESULTING AIRPLANE GLUT INDEED A RECENT FINANCIAL REPORT BY POLARIS SAID NINE OF THE PARTNERSHIP'S 30 PLANES ARE OFFLEASE AND SIX OF THOSE ARE BEING DISASSEMBLED TO BE SOLD AS PARTS 9306080072 930608 REVIEW & OUTLOOK EDITORIAL THE CLASSWARFARE ECONOMY BACK TO THE 1970S A PROVINCIAL LITTLE TOWN LIKE WASHINGTON DOESN'T SEE IT YET BUT A POWERFUL CONSENSUS EMERGED AMONG THE WORLD'S TAX COLLECTORS IN THE LAST DECADE IT CONCERNED THE UNWISDOM OF STEEPLY PROGRESSIVE JUMPS IN MARGINAL TAX RATES HIGH MARGINAL RATES MEANT THAT A TAXPAYER COULD SUDDENLY FACE A MUCH BIGGER BITE ON THE NEXT DOLLAR OF EARNINGS THAN HE OR SHE DID ON THE LAST SUCH A PERSON WOULD NATURALLY HAVE MIXED FEELINGS ABOUT WHETHER TO EARN THAT NEXT DOLLAR IN THE COURSE OF NATURE GOVERNMENT WOULD HAVE LESS CHANCE OF TAXING AWAY PART OF THAT DOLLAR FOR ITS OWN PURPOSES IT WAS THIS SORT OF THINKING THAT LED CONSERVATIVES WHO CARE ABOUT INCENTIVES MRS THATCHER MR REAGAN AND LIBERALS WHO CARE ABOUT KEEPING MONEY FLOWING INTO THE WELFARE STATE SWEDISH SOCIAL DEMOCRATS LABORITES IN NEW ZEALAND TO SEE EYE TO EYE WHEN IT CAME TO CUTTING MARGINAL TAX RATES BILL CLINTON'S TAX BILL WOULD ADD A NEW 36 BRACKET ON TOP OF TODAY'S TOP 31 BRACKET WE'RE TOLD THIS REPRESENTS ONLY A SLIGHT BACKSLIDING FROM THE TAX REFORM PRINCIPLES THAT SWEPT THE CIVILIZED WORLD AND ANYWAY IT'S ABOUT FAIRNESS STUPID THE FAIRNESS HOKUM IS EASILY DISPOSED OF MR REAGAN SLASHED THE TOP MARGINAL RATE FROM 70 TO 28 OVER THE SAME PERIOD THE RICH HOWEVER YOU DEFINE THEM PAID A BIGGER SHARE OF THE INCOME TAX WHILE THE NONRICH PAID A SMALLER SHARE WHEN MR CLINTON TALKS ABOUT REVERSING THE 1980S DOES THAT MEAN PUSHING THE TAX BURDEN BACK ONTO THOSE FARTHER DOWN THE INCOME SCALE AND WE'VE ONLY BEGUN TO PLUMB THE FINE PRINT FOR THE CLINTON PLAN INTRODUCES A BLUR OF STEALTH BRACKETS GOING UP TO NEARLY 45 ONE INNOVATION THAT WOULD BE PRESERVED IS THE PHASEOUT OF PERSONAL EXEMPTIONS AND ITEMIZED DEDUCTIONS A DARMANESQUE PRODUCT OF THE 1990 BUDGET DEAL IT WAS SUPPOSED TO BE TEMPORARY FOR PURPOSES OF MAKING THE DEFICIT GO AWAY BUT THE DEFICIT DIDN'T GO AWAY AND NOW THE PHASEOUTS WOULD BECOME ETERNAL ADDING SEVERAL POINTS TO THE MARGINAL RATE OF FAMILIES AS THEY PROGRESS THROUGH THE 36 BRACKET IN ADDITION MR CLINTON WOULD REMOVE THE CAP ON THE 29 MEDICARE CONTRIBUTION TODAY IT APPLIES ONLY TO THE FIRST 135000 OF WAGE OR SALARY INCOME THE NEW PLAN WOULD EXTEND IT UPWARD TO INFINITY YOU'D NEED ADVANCED CALCULUS TO FIGURE OUT HOW ANY GIVEN TAXPAYER WILL BE AFFECTED BY THESE CHANGES BUT THE BOTTOM LINE IS CLEARLY ANTIKIDS ANTIFAMILY ACCORDING TO STEPHEN ENTIN FORMER GURU OF THE REAGAN TREASURY A TYPICAL COUPLE WITH TWO CHILDREN MAY END UP PAYING A MARGINAL RATE OF 422 THIS EVEN THOUGH THEY'RE NOMINALLY IN THE 36 BRACKET OR IMAGINE A FAMILY OF FOUR WITH A PRIMARY BREADWINNER AND A SPOUSE WHO TAKES A LOWPAYING JOB BY PUSHING THE FAMILY UP THROUGH THE STEALTH BRACKETS AND TRIGGERING THE PHASEOUTS THE SPOUSE'S EARNINGS COULD ATTRACT AN EFFECTIVE MARGINAL TAX RATE OF 52 OR 52 CENTS ON EVERY DOLLAR EARNED HOW DO MR CLINTON'S FEMINIST ALLIES FEEL ABOUT THIS DETERRENT TO WORKING MOTHERHOOD OF COURSE THESE COUPLES COULD SAVE MONEY BY GETTING DIVORCED AND FILING SEPARATELY BUT SHOULD THE GOVERNMENT BE IN THE BUSINESS OF REWARDING FAMILY BREAKUP OR DISCOURAGING SAVING MR CLINTON PRETENDS THAT HIS TAX HIKE ON SOCIAL SECURITY RECIPIENTS IS A SPENDING CUT BUT IN EFFECT IT'S REALLY A TAX THAT PUNISHES PEOPLE FOR SAVING MONEY ON THEIR OWN SINCE INCOME FROM THEIR PRIVATE SAVINGS IS WHAT WOULD PUSH RETIREES OVER THE THRESHOLD AND IF GRANDPA TAKES A JOB AT MCDONALD'S MORE PENALTIES SWING INTO ACTION AND HE CAN END UP PAYING A MARGINAL TAX RATE OF 90 IN SOME CASES MR CLINTON CAN PASS THE BUCK FOR AT LEAST ONE THING IT WASN'T HIM BUT DANNY ROSTENKOWSKI AND HIS COMMITTEE STAFFERS WHO WITHOUT ANYBODY VOTING OR BEING CONSULTED REINTRODUCED THE INIQUITY OF BRACKET CREEP NEITHER THE 36 BRACKET NOR THE MILLIONAIRE SURCHARGE WILL BE INDEXED TO INFLATION UNTIL 1995 THE SOCIAL SECURITY THRESHOLD WON'T BE INDEXED EVEN THEN NOR THE THRESHOLDS FOR THE PHASEOUTS IN OTHER WORDS ALL THESE TAXES WILL STRIKE PROGRESSIVELY FARTHER DOWN THE INCOME SCALE AS TIME GOES BY JACKING UP MARGINAL RATES LETS MR CLINTON THUMP HIS CHEST ABOUT MAKING THE RICH PAY THEIR FAIR SHARE BUT THE NEW BRACKETS WON'T RAISE AS MUCH MONEY AS HE CLAIMS BUT THEN THEY'RE ULTIMATELY DIVERSIONARY ANYWAY WE'RE IN THE CLASS WARFARE ECONOMY NOW MR CLINTON HAS BIG BIG SPENDING PLANS AND HE MEANS TO SOAK THE MIDDLE CLASS HIS FIRST ATTEMPT THE ENERGY TAX MAY YET FLAME OUT OVER THE SENATE FINANCE COMMITTEE BUT THE CLINTONITES ALREADY HAVE PAYROLL TAXES SIN TAXES AND THE VAT QUEUED UP ON THE WHITE HOUSE LAUNCHING PAD EVEN JIMMY CARTER CALLED THE PRE1980S INCOME TAX SYSTEM A DISGRACE TO THE HUMAN RACE MOST COUNTRIES HAVE WISED UP AND OPTED OUT OF THE VICIOUS CIRCLE OF IMPOSING HIGH MARGINAL RATES AND THEN TRYING TO CORRECT THE ECONOMIC DAMAGE WITH ALL SORTS OF SILLY EXEMPTIONS AND LOOPHOLES MR CLINTON WOULD LEAD US BACK TO THE 1970S WHO WANTS TO GO THERE 9306080071 930608 BUSINESS BRIEF PPG INDUSTRIES INC TENTATIVE DECISION' IS MADE TO CLOSE PENNSYLVANIA PLANT PPG INDUSTRIES INC PITTSBURGH SAID IT MADE A TENTATIVE DECISION TO CLOSE ITS AUTO WINDSHIELD PLANT IN GREENSBURG PA ON SATURDAY STRIKING WORKERS AT THE PLANT VOTED DOWN THE COMPANY'S FINAL OFFER PPG SAID THAT THE PLANT WAS UNPROFITABLE AND THAT ITS DECISION WASN'T RELATED TO THE STRIKE THE PLANT EMPLOYS 320 WORKERS OFFICIALS WITH THE ALUMINUM BRICK & GLASS WORKERS WHICH REPRESENTS THE PPG EMPLOYEES WEREN'T AVAILABLE FOR COMMENT SEPARATELY PPG SAID IT REACHED A THREEYEAR LABOR CONTRACT WITH THE 200 HOURLY WORKERS AT ITS FLATGLASS PLANT IN FRESNO CALIF ENDING A TWOWEEK STRIKE THE GLASS AND CHEMICALS CONCERN SAID MEMBERS OF LOCAL 474 OF THE ALUMINUM BRICK & GLASS WORKERS APPROVED THE CONTRACT WHICH PROVIDES A COSTSHARING HEALTHCARE PLAN AND LUMP SUM PAYMENTS IN EACH YEAR WORKERS REMAIN ON STRIKE AT TWO OTHER PPG FACILITIES 9306080070 930608 BUSINESS BRIEF DYLEX LTD COMPANY TO SELL 501 STAKE IN CLOTHIER TO UNDERWRITERS DYLEX LTD AGREED TO SELL TO UNDERWRITERS ITS 501 STAKE IN SUZY SHIER LTD FOR 605 MILLION CANADIAN DOLLARS US473 MILLION UNDERWRITERS WILL RESELL DYLEX'S STAKE WITH C188 MILLION IN SUZY SHIER TREASURY SHARES IN AN INITIAL PUBLIC OFFERING THIS MONTH DYLEX HAD C898 MILLION IN LONGTERM DEBT AS OF JAN 30 DAVID POSLUNS CHIEF FINANCIAL OFFICER SAID DYLEX COULD HAVE PAID THE C264 MILLION LONGTERM DEBT DUE THIS YEAR WITHOUT SELLING THE 269STORE WOMEN'S CLOTHING CHAIN BUT THE SALE MAKES IT A LOT EASIER DYLEX MIGHT TAKE ANOTHER CHAIN PUBLIC WITHIN 12 MONTHS HE SAID DYLEX LAST MONTH SOLD C1125 MILLION OF DEBENTURES TO REDEEM C110 MILLION OF DEBENTURES THAT MATURE JUNE 30 THE TORONTO COMPANY LOST C219 MILLION ON C19 BILLION OF REVENUE IN 1992 SUZY SHIER'S CHIEF EXECUTIVE IRVING TEITELBAUM SAID UNDERWRITERS HAVE BUYERS FOR THE SUZY SHIER SHARES HE SAID THE CHAIN'S EXPECTED C188 MILLION IN PROCEEDS WILL FINANCE A 40STORE EXPANSION ACROSS CANADA THIS YEAR WITH LA SENZA LINGERIE STORES 9306080069 930608 BUSINESS BRIEF DELUXE CORP CHECK PRINTER WILL CLOSE 16 PLANTS AND TAKE A CHARGE DELUXE CORP SAID IT PLANS TO CLOSE 16 OF ITS 60 CHECKPRINTING FACILITIES AND RECORD A 65 MILLION PRETAX CHARGE IN THE SECOND QUARTER TO COVER THE CLOSINGS DELUXE ALSO SAID IT EXPECTS ITS SECONDQUARTER NET INCOME TO FALL ABOUT 12 BELOW THE YEAREARLIER 476 MILLION OR 57 CENTS A SHARE BEFORE THE RESTRUCTURING CHARGE BUT FULLYEAR EARNINGS ARE EXPECTED TO EQUAL THE 2028 MILLION OR 242 A SHARE EARNED IN 1992 THE ST PAUL MINN COMPANY SAID THE COMPANY SAID IT DOESN'T NEED AS MANY CHECKPRINTING PLANTS BECAUSE OF NEW PRINTING EQUIPMENT INSTALLED OVER THE LAST FIVE YEARS AS WELL AS ELECTRONICNETWORK CAPABILITIES CHAIRMAN AND CEO HAROLD V HAVERTY SAID THAT THE COMPANY INSTALLED NEW PRINTING EQUIPMENT OVER THE PAST FIVE YEARS THAT HAS INCREASED CHECKPRODUCTION CAPACITY THE NATION'S LARGEST CHECK PRINTER SAID THE PLANT CLOSINGS AND OTHER RESTRUCTURING MOVES WILL RESULT IN THE RELOCATION OR DISMISSAL OF ABOUT 875 OF ITS 10300 CHECKPRINTING DIVISION EMPLOYEES 9306080068 930608 BUSINESS BRIEF COOPER INDUSTRIES SETS A SEPTEMBER OFFERING TO SPIN OFF BELDEN HOUSTON COOPER INDUSTRIES INC SAID IT WILL SPIN OFF ITS ELECTRICAL WIRE AND CABLE DIVISION IN A PUBLIC OFFERING TO BE COMPLETED BY THE END OF SEPTEMBER BELDEN DIVISION ONE OF 20 DIFFERENT MANUFACTURING DIVISIONS OF COOPER HAD REVENUE OF ABOUT 400 MILLION IN 1992 COOPER SAID IT IS SELLING THAT BUSINESS BECAUSE OF ITS FOCUS ON CORE BUSINESSES SUCH AS AUTOMOTIVE PARTS ELECTRICAL EQUIPMENT HARDWARE PETROLEUM INDUSTRIAL EQUIPMENT AND HAND TOOLS SINCE COOPER HAS NOT YET FILED WITH THE SECURITIES AND EXCHANGE COMMISSION NO OTHER DETAILS ABOUT THE SALE ARE AVAILABLE IN 1992 COOPER HAD ABOUT 62 BILLION IN REVENUE ANALYSTS SAY THE SALE WAS NOT EXPECTED BUT IS UNDERSTANDABLE THE SALE IS A MODEST POSITIVE MOVENO BIG DEAL EITHER WAY SAYS STEVEN COLBERT ANALYST WITH PRUDENTIAL SECURITIES INC SELLING BELDEN MAKES SENSE FOR COOPER WHICH MAY FEEL UNCOMFORTABLE WITH VOLATILE PRICES OF COPPER THE MAIN INPUT FOR WIRE PRODUCED AT BELDEN HE SAYS THE WIRE IS PROBABLY LESS PROFITABLE THAN COOPER'S PROPRIETARY ELECTRICAL EQUIPMENT ASSOCIATED WITH A PARTICULAR NAME LIKE CROUSEHINDS SAYS MR COLBERT CROUSEHINDS A DIVISION OF COOPER PRODUCES EXPLOSIONPROOF ELECTRICAL FITTINGS AND SWITCHES FOR DIFFICULT OPERATING ENVIRONMENTS BELDEN WAS A PART OF CROUSEHINDS WHEN COOPER ACQUIRED IT IN 1981 ALTHOUGH COOPER A DIVERSIFIED MANUFACTURER HAS SOLD OTHER DIVISIONS THIS IS THE FIRST TIME A SALE OF ONE OF ITS BUSINESSES WOULD BE ACCOMPLISHED THROUGH A PUBLIC OFFERING CHOSEN BECAUSE OF CURRENT MARKET CONDITIONS THE COMPANY SAID IT DOESN'T INTEND TO RETAIN A STAKE IN BELDEN LOCATED IN RICHMOND IND COOPER MADE SOME MANAGEMENT CHANGES ACCOMPANYING THE ANNOUNCEMENT OF THE SALE C BAKER CUNNINGHAM EXECUTIVE VICE PRESIDENT OF OPERATIONS AT COOPER WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF BELDEN NISHAN TESHOIAN PRESIDENT OF BELDEN WILL JOIN COOPER AS EXECUTIVE VICE PRESIDENT OPERATIONS 9306080067 930608 BUSINESS BRIEF COOPER TIRE & RUBBER CO CONCERN SAYS DROP IS LIKELY IN SECONDQUARTER RESULTS COOPER TIRE & RUBBER CO SAID IT IS NOT APT TO MATCH YEARAGO RESULTS FOR THE SECOND QUARTER BECAUSE OF SOFTNESS IN THE REPLACEMENT TIRE MARKET COOPER SAID SALES AND EARNINGS WILL BE GENERALLY GOOD BUT LIKELY LOWER THAN THE YEARAGO NET INCOME OF 25 MILLION OR 30 CENTS A SHARE ON SALES OF 3064 MILLION THE FINDLAY OHIO COMPANY SAID THE 1992 SECOND QUARTER WAS EXCEPTIONAL UNCERTAINTY EXISTS REGARDING REPLACEMENT TIRE DEMAND FOR THE REMAINDER OF THE YEAR AS THE CONSUMER SEEMS CONCERNED REGARDING OVERALL ECONOMIC CONDITIONS THE COMPANY SAID COOPER'S STOCK PLUNGED 775 OR 24 TO 25125 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9306080066 930608 BUSINESS BRIEF SERVICE CORP INTERNATIONAL FUNERAL CONCERN BUYS ASSETS OF PINE GROVE OF AUSTRALIA SERVICE CORP INTERNATIONAL AGREED TO ACQUIRE ALL OF THE BUSINESS ASSETS OF PINE GROVE FUNERAL GROUP BASED IN SYDNEY AUSTRALIA FOR 69 MILLION SERVICE CORP ONE OF THE WORLD'S LARGEST FUNERAL SERVICE ORGANIZATIONS SAID THE PURCHASE WILL INCLUDE 58 FUNERAL HOMES AND EIGHT CEMETERY/CREMATORIUM OPERATIONS AND IS EXPECTED TO ADD 32 MILLION TO ANNUAL REVENUE FOR 1992 THE HOUSTON CONCERN HAD REVENUE OF 7725 MILLION THE PINE GROVE PURCHASE WHICH IS SUBJECT TO APPROVAL BY AUSTRALIAN REGULATORS WOULD INCREASE TO 745 THE NUMBER OF FUNERAL HOMES SERVICE CORP OPERATES SERVICE CORP SAID IT EXPECTS THE TRANSACTION TO CLOSE THIS SUMMER CITING THE POSSIBLE ACQUISITION MOODY'S INVESTORS SERVICE INC SAID IT PLACED UNDER REVIEW FOR POSSIBLE DOWNGRADE THE A3 SENIOR DEBT RATING AND BAA1 SUBORDINATED DEBT RATING OF SERVICE CORP ABOUT 300 MILLION OF LONGTERM DEBT IS AFFECTED MOODY'S SAID IN LATE COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY SERVICE CORP SHARES ROSE 25 CENTS TO 20875 9306080065 930608 BUSINESS BRIEF DATA BROADCASTING CORP COMPANY AGREES TO ACQUIRE MANAGEMENT SYSTEMS MAKER DATA BROADCASTING CORP SAID IT SIGNED AN AGREEMENT IN PRINCIPLE TO ACQUIRE CAPITAL MANAGEMENT SCIENCES LOS ANGELES A CLOSELY HELD MAKER OF PORTFOLIO MANAGEMENT SYSTEMS DATA BROADCASTING NEW YORK PROPOSED TO ACQUIRE CMS FOR 175 MILLION IN CASH AND NOTES AS WELL AS UP TO 8 MILLION IN DATA BROADCASTING COMMON STOCK DEPENDING ON FUTURE EARNINGS THE AGREEMENT COULD GIVE CMS SHAREHOLDERS AND EMPLOYEES A 10 TO 12 INTEREST IN DATA BROADCASTING CMS IS EXPECTED TO HAVE PRETAX EARNINGS OF ABOUT 3 MILLION FOR THE CURRENT FISCAL YEAR THAT ENDS SEPT 1 DATA BROADCASTING WHICH PROVIDES STOCK MARKET QUOTE SERVICES AND OTHER SPECIALIZED MARKET DATA HAD SALES OF 414 MILLION FOR THE NINE MONTHS ENDED MARCH 31 IN OVERTHECOUNTER TRADING YESTERDAY DATA BROADCASTING FELL 625 CENTS TO 29375 9306080064 930608 BUSINESS BRIEF GLOBAL MARINE INC TRANSOCEAN DRILLING AGREES TO TERMS OF JOINT VENTURE GLOBAL MARINE INC SAID THAT IT SIGNED A LETTER OF INTENT WITH TRANSOCEAN DRILLING AS TO FORM A JOINT VENTURE COVERING THE OWNERSHIP OF FOUR OFFSHORE DRILLING UNITS UNDER THE TERMS OF THE LETTER GLOBAL MARINE WILL ACQUIRE A 50 INTEREST IN THREE TRANSOCEAN JACKUP DRILLING RIGS IN EXCHANGE FOR A HALFINTEREST IN A GLOBAL MARINE HEAVY WEATHER JACKUP DRILLING RIG AND 85 MILLION IN CASH THE PACT ALSO CONTEMPLATES FURTHER STRATEGIC ALLIANCES BETWEEN THE TWO COMPANIES TO PROVIDE INTEGRATED DRILLING SERVICES GLOBAL MARINE WILL ASSUME FULL MARKETING AND OPERATIONAL RESPONSIBILITY FOR THE TRANSOCEAN JACKUPS WITH TRANSOCEAN DOING THE SAME FOR GLOBAL'S RIG TRANSOCEAN IS A NORWEGIAN DRILLING CONTRACTOR AND DRILLING FLUIDS COMPANY GLOBAL MARINE IS A HOUSTONBASED INTERNATIONAL OFFSHORE DRILLING CONTRACTOR WITH INTERESTS IN OIL AND GAS PRODUCTION 9306080063 930608 BUSINESS BRIEF NEWELL CO COMPANY LOWERS FORECAST FOR ITS 2NDQUARTER PROFIT NEWELL CO CITING CONTINUED SOFTNESS IN RETAIL SALES LOWERED ITS SECONDQUARTER EARNINGS OUTLOOK THE COMPANY SAID RESULTS COULD BE SLIGHTLY BELOW THE 46 CENTS A SHARE EARNED IN THE YEAREARLIER QUARTER THE FREEPORT ILL HARDWARE HOUSEWARES AND OFFICE PRODUCTS COMPANY HAD EXPECTED EARNINGS FOR THE PERIOD WOULD BE FLAT OR SLIGHTLY ABOVE THE PERSHARE RESULTS OF THE PREVIOUS YEAR DESPITE THE SOFT RETAIL CONDITIONS NEWELL SAID IT EXPECTS RECORD SALES DUE TO ACQUISITIONS AND CONTINUING INTERNAL GROWTH FOR THE YEAREARLIER QUARTER NEWELL HAD SALES OF 318 MILLION NEWELL SAID SALES IN JUNE APPEAR STRONGER THAN IN APRIL OR MAY BUT NOT STRONG ENOUGH TO GIVE US CONFIDENCE THAT WE WILL ACHIEVE OUR ORIGINAL EARNINGS PER SHARE TARGETS 9306080061 930608 ENVIRONMENT PANDA LOANS TO ZOOS CAUSE RUCKUS BY ROY J HARRIS JR STAFF REPORTER OF THE WALL STREET JOURNAL SAN DIEGO BAMBOO IS SPROUTING FROM A NEWLY SODDED LITTLE ISLAND READY FOR A PAIR OF INVITED GUESTS TO START MUNCHING AS SOON AS THEY ARRIVE FROM CHINA BEYOND CROWDCONTROL RAILINGS PLANTED IN FRESH CONCRETE A SPECIAL SHOP IS BEING ERECTED TO FILL THE EXPECTED DEMAND FOR TSHIRTS AND STUFFED TOYS THAT ARE ALREADY FILLING WAREHOUSES HERE BUT WHILE CONSTRUCTION OF THE SAN DIEGO ZOO'S GIANTPANDA ENCLOSURE IS GOING SMOOTHLY ZOO OFFICIALS ARE LEARNING THAT IT'S A JUNGLE OUT THERE JUST THIS PAST WEEKEND AN INCENSED WORLD WILDLIFE FUND OPPOSED SAN DIEGO'S BID FOR A US FISH AND WILDLIFE SERVICE PERMIT THAT WOULD ALLOW THE FIRST LONGTERM PANDA BREEDING LOAN TO AN AMERICAN ZOO THE ZOO HAD HOPED FOR APPROVAL IN TIME TO WELCOME SHI SHI AND SHUN SHUN BY THE END OF THE MONTH BUT A FUND OFFICIAL WHO RATES THE CHANCES OF THE PANDAS' COMING HERE NO MORE THAN 5050 SAYS THE RUSH FOR APPROVAL SHOWS SHEER ARROGANCE MAN'S INHUMANITY TO PANDAS HAS BECOME A HOT TOPIC A NEWSWEEK COVER STORY IN APRIL QUESTIONED WHETHER CAPTIVE BREEDING MAKES SENSE IN HIS BOOK THE LAST PANDA PUBLISHED EARLIER THIS YEAR GEORGE SCHALLER OF THE WILDLIFE CONSERVATION SOCIETY WHICH INCLUDES THE BRONX ZOO EXCORIATES ZOOS FOR EXPLOITING WHAT IS BY FAR THE WORLD'S MOST POPULAR EXHIBITION ANIMAL EVEN AS THE HABITAT OF THE ROUGHLY 1000 REMAINING PANDAS VANISHES IN CHINA AND DR SCHALLER HIMSELF A SCIENTIST WHOSE SUPPORT WILL PROBABLY BE SOUGHT BY THE NUMEROUS ZOOS LINING UP BEHIND SAN DIEGO FOR PANDA LOANS IS NOW CRITICIZING SAN DIEGO'S APPROACH IN PARTICULAR IT IS FUELED BY ONE REASON GREED HE SAYS THEY KNOW THAT IF THEY ARE THE FIRST TO GET A PAIR OF PANDAS OVER HERE TO BREED THEY WILL MAKE MILLIONS OF DOLLARS BUT THE QUESTION OF THE SAN DIEGO ZOO'S MOTIVATION ISN'T BLACK AND WHITE ZOO OFFICIALS HERE SHOCKED BY THE CONTROVERSY BELIEVE THEIR PROGRAM AND THE MILLIONS OF DOLLARS THEY AGREE IT WOULD PRODUCE COULD HELP SOLVE THE SAME PANDA REPOPULATION PUZZLE THAT DR SCHALLER AND THE WORLD WILDLIFE FUND SEEK TO SOLVE IF WE CAN'T FIGURE IT OUT THEN I'M NOT SURE WHO CAN SAYS EXECUTIVE DIRECTOR DOUGLAS MYERS IF NOT SAN DIEGO THEN WHO A SPOKESMAN SAYS THE ZOO IS CONFIDENT THE US WILL STILL APPROVE ITS PANDA LOAN SO CONFIDENT THAT IT DOESN'T REALLY HAVE A CONTINGENCY PLAN FOR USE OF THE 850000 PANDA ENCLOSURE AND SHOP AND FOODSERVICE COMPLEX OR FOR THE CASES OF MERCHANDISE THAT HAVE BEEN ORDERED A SERIOUS 15YEAR RELATIONSHIP WITH CHINA WORKING WITH ENDANGERED SPECIES LIES BEHIND THE ZOO'S SUCCESS NEGOTIATING THE FIRST OF WHAT ARE EXPECTED TO BE NUMEROUS THREEYEAR BREEDING LOANS TO NORTH AMERICA SAN DIEGO ENVISIONS A CLUSTER OF ANIMALS THAT COULD BE EXCHANGED AMONG ZOOS LETTING FEMALES CHOOSE AMONG MALES IN ORDER TO IMPROVE THE LIKELIHOOD OF PANDA BREEDING IN THE US TODAY ONLY A SINGLE MALE HSINGHSING RESIDES IN THE US AT WASHINGTON'S NATIONAL ZOO THE PANDASAVING MOTIVATION EXCUSES HIS ZOO'S DESIRE TO HAVE A LITTLE FUN WITH THIS MR MYERS SAYS EXPLAINING THE 250APLATE PANDAMONIUM PARTY JUNE 19 THAT HAS SOLD OUT ITS 1000 TICKETS PROCEEDS FROM THE ANNUAL FUNDRAISER WILL HELP DEFRAY THE ENCLOSURE'S COST THERE'S NO QUESTION THAT PANDAS ARE PROFITABLE OFFICIALS HERE FIGURE THEIR EXHIBIT WOULD REVERSE WHAT WOULD OTHERWISE BE A SECOND STRAIGHT DECLINE IN ANNUAL ATTENDANCE THE NUMBER OF VISITORS SHOT UP BY A THIRD DURING A 200DAY PANDA LOAN IN 1987 AND 1988 AND LED TO RECORD 1988 SAN DIEGO ZOO ATTENDANCE OF THREE MILLION ZOO MERCHANDISERS ALSO SOLD 400000 PANDA TSHIRTS CONTRIBUTING TO A NET RETURN FROM THE PANDA EXHIBIT OF 57 MILLION BUSCH GARDENS IN TAMPA FLA IS PLANNING TO APPLY FOR A BREEDING LOAN OF PANDAS AND ZOOS IN SEATTLE NEW ORLEANS AND ELSEWHERE HAVE EXPRESSED INTEREST THE SUSPICION IS HARDLY NEW THAT ZOOS ENTER THE RENTAPANDA BUSINESS MORE FOR THE MONEY THAN FOR ANY DESIRE TO EDUCATE PEOPLE ABOUT THE PANDA'S PLIGHT OR HELP FIND WAYS TO SAVE THE ANIMAL IN THE WILD PAST OUTCRIES ABOUT SHORTTERM LOANS FROM CHINA LED TO A FOURYEAR MORATORIUM BY THE FISH AND WILDLIFE SERVICE WHICH WAS LIFTED LAST YEAR AND THE 161MEMBER AMERICAN ASSOIATION OF ZOOLOGICAL PARKS AND AQUARIUMS WHICH IS SUPPORTING SAN DIEGO'S BID ENDED ITS OWN THREEYEAR MORATORIUM ONLY LAST APRIL BOTH ADOPTED STRICT GUIDELINES TO LIMIT LOANS WHEN THEIR BANS WERE LIFTED THE SAN DIEGO ZOO IS BEING CAREFUL NOT TO EMPHASIZE COMMERCIAL BENEFITS FROM THE PANDA LOANS OFFICIALS STRESS THAT EDUCATIONAL MATERIALS WILL ACCOMPANY MOST PANDA SOUVENIRS SOLD IN ITS STORES AND THAT A HEAVY SHARE OF ALL ZOO RECEIPTS WILL GO TO CONSERVATION INCLUDING 1 MILLION TO CHINA FOR EACH OF THE THREE YEARS OF THE LOAN THE ZOO HAS EVEN BOUGHT UP NEARLY 96 OF DR SCHALLER'S BOOKS FOR ITS PANDASHOP SHELVES NANCY CZEKALAGRUBER HAS BEEN STUDYING URINE SAMPLES OF FEMALE PANDAS FOR YEARS IN HER WORK WITH THE ZOO'S CENTER FOR REPRODUCTION OF ENDANGERED SPECIES HOPING TO LEARN THE MYSTERIES OF PREDICTING THE FEW DAYS EACH YEAR WHEN THEY ARE RECEPTIVE TO MALES DONALD LINDBURG A BEHAVIORIST WITH THE ENDANGEREDSPECIES CENTER SAYS CHINA HASN'T A SINGLE PERSON IN HIS FIELD WORKING IN ITS CENTERS WHERE MOST OF THE WORLD'S 100 CAPTIVE PANDAS ARE KEPT A SUCCESSFUL CAPTIVEBREEDING PROGRAM IN THE US WOULD FACILITATE BREEDING IN THE NATURAL HABITAT HE SAYS WE KNOW WHAT OUR PUBLIC EXPECTS THEY EXPECT US TO TRY TO COME TO GRIPS AND TAKE ON EVEN THE TOUGH ONES SAYS SAN DIEGO ZOO GENETICIST OLIVER RYDER WHO SUPPORTS THE CLUSTERING OF PANDAS IN VARIOUS NORTH AMERICAN ZOOS EVERY EFFORT HAS TO BE MADE TO MAKE EVERY PANDA CONTRIBUTE TO THE GENE POOL HE SAYS BUT DR SCHALLER ARGUES THAT THE REAL REASON BEHIND ZOOS' NEW WILLINGNESS TO WORK OUT BREEDING LOANS IS COMMERCIAL IF AN AMERICAN ZOO WANTS TO HELP IT SHOULD SUPPORT THE CHINESE POPULATION HE SAYS THAT'S WHERE YOU HAVE A LOT OF CHOICES AND YOU CAN GET A COMPATIBLE PAIR LAST YEAR THEY HAD THE BEST RECORD EVER 11 BABY PANDAS SURVIVED WHILE HIS MAJOR CONCERN IS THAT BREEDING LOANS TO ZOOS AROUND THE WORLD WILL LEAD CHINA TO GO OUT AND CATCH LOTS MORE PANDAS TO FILL THEIR CENTERS HE HAS A PARTICULAR BONE TO PICK WITH THIS ZOO SAN DIEGO BROKE THE SPIRIT OF THE MORATORIUM BY NEGOTIATING FOR A PANDA LOAN WHILE BOTH THE US AND ZOOASSOCIATION BANS WERE IN EFFECT HE SAYS THE WORLD WILDLIFE FUND WHICH HAS OPPOSED PREVIOUS PANDA LOANS IN COURT DOESN'T BELIEVE CALLING FOR A BOYCOTT OF THE SAN DIEGO ZOO WOULD HELP SOLVE THE PANDA'S PROBLEM IN FACT IT SAYS BREEDING LOANS MAY BE ACCEPTABLE IF ZOOS DESIGNATE ALL PROFITS FOR CONSERVATION WORK AND OTHER CONDITIONS ARE MET BUT DR SCHALLER DOESN'T SEE A BOYCOTT AS A BAD APPROACH PEOPLE HAVE BEEN MARCHING FOR THE ORCAS AT SEA WORLD HE NOTES I'M SURPRISED THEY'VE NEVER PICKETED FOR THE PANDAS 9306080060 930608 BUSINESS BRIEF HORSHAM CORP SAUDI CONCERN HALVES STAKE WITH SALE OF BLOCK OF SHARES HORSHAM CORP SAID A HOLDING COMPANY FOR THE SAUDI ROYAL FAMILY SOLD A BLOCK OF FOUR MILLION HORSHAM SHARES WHICH REPRESENTS 45 OF THE TOTAL SHARES OUTSTANDING A HORSHAM SPOKESMAN SAID THE SELLER WAS KILLARNEY LTD WHICH RETAINS ABOUT FOUR MILLION HORSHAM SHARES THE SPOKESMAN SAID HE DOESN'T KNOW WHY THE SAUDI CONCERN REDUCED ITS HOLDING HORSHAM IS A TORONTO HOLDING COMPANY WITH INTERESTS IN GOLD MINING OIL REFINING AND MARKETING AND PROPERTY DEVELOPMENT REPRESENTATIVES FOR KILLARNEY COULDN'T BE REACHED FOR COMMENT THE SHARE BLOCK WAS SOLD ON THE NEW YORK STOCK EXCHANGE AT 11625 A SHARE IN LATE TRADING ON THE BIG BOARD HORSHAM SHARES WERE QUOTED AT 1175 DOWN 375 CENTS OR 31 KILLARNEY SOLD A SIMILARSIZE BLOCK OF HORSHAM SHARES IN LATE 1991 FOR 8875 A SHARE ON THE NEW YORK STOCK EXCHANGE HORSHAM'S LARGEST HOLDER IS PETER MUNK THE COMPANY'S FOUNDER CHAIRMAN AND CHIEF EXECUTIVE OFFICER HE HOLDS 10 OF THE SHARES BUT CONTROLS 83 OF THE VOTING RIGHTS THROUGH HIS HOLDING OF A SPECIAL CLASS OF MULTIPLE VOTING SHARES 9306080059 930608 SEVEN COMPANIES NEAR PACT TO SEEK OIL IN CASPIAN SEA BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL SEVEN MULTINATIONAL OIL COMPANIES ARE EXPECTED TO SIGN A PRELIMINARY AGREEMENT IN KAZAKHSTAN THIS WEEK THAT COULD LEAD TO THE DEVELOPMENT OF A POTENTIALLY HUGE OIL FIELD IN THE CASPIAN SEA THE PACT EXPECTED TO BE SIGNED AT A FORMAL CEREMONY TOMORROW IN THE REPUBLIC'S CAPITAL CITY OF ALMATA COVERS PLANS TO PERFORM PREPARATORY WORK THAT WOULD PROCEED TO EXPLORATION IN KAZAKHSTAN'S PORTION OF THE SEA THE WORK INCLUDES DETERMINING HOW MUCH OIL THERE IS AND WHERE IT IS LOCATED ACCORDING TO EXECUTIVES AT SEVERAL COMPANIES PLANNING TO SIGN THE GROUP HOPES TO COMPLETE A FINAL AGREEMENT ON THE PREEXPLORATION WORK WITHIN THE NEXT FOUR MONTHS THE ONLY US COMPANY INVOLVED IS MOBIL CORP FAIRFAX VA THE OTHERS ARE ROYAL DUTCH/SHELL GROUP BASED JOINTLY IN LONDON AND THE HAGUE BRITISH PETROLEUM CO AND BRITISH GAS PLC FRANCE'S TOTAL SA AGIP SPA A UNIT OF ENTE NAZIONALE IDROCARBURI ITALY'S STATEOWNED OIL COMPANY AND THE NORWEIGAN STATE OIL COMPANY KNOWN AS STATOIL THE REPUBLIC'S OIL COMPANY WOULD ALSO BE A PARTNER COMPANY OFFICIALS DECLINED TO COMMENT FORMALLY AHEAD OF THE AGREEMENT BUT ONE EXECUTIVE STRESSED THAT IT'S ONLY STEP ONE HE SAID GEOLOGIC SURVEYS AND OTHER WORK MUST PROCEED BEFORE THE COMPANIES WOULD SPEND THE POTENTIALLY BILLIONS OF DOLLARS NEEDED TO DEVELOP A LARGE FIELD STILL ANY AGREEMENT IN KAZAKHSTAN WOULD BE NOTEWORTHY BECAUSE THE REPUBLIC HAS BEEN MORE ISOLATED FROM THE WEST THAN MANY OTHER FORMER MEMBERS OF THE SOVIET UNION SAID BERNARD PICCHI AN OIL ANALYST AT KIDDER PEABODY & CO IN NEW YORK NO QUESTION THE CASPIAN SEA HAS OIL HE SAID BUT MOST OF THE ACTIVITY HAS BEEN ON THE WESTERN SIDE NEAR AZERBAIJAN WHILE THE CASPIAN SEA HAS BEEN A PRIME FOCUS FOR WESTERN COMPANIES SEEKING TO DEVELOP THE FORMER SOVIET UNION'S OIL RESERVES IT HAS BEEN SLOW GOING ON ALL SIDES IT HAS TAKEN CHEVRON CORP MORE THAN FIVE YEARS OF NEGOTIATING TO BEGIN PRODUCING OIL IN THE GIANT TENGIZ FIELD IN KAZAKHSTAN NEAR THE CASPIAN SEA IN A JOINT VENTURE WITH THE REPUBLIC A SHIPMENT OF OIL ON MAY 25 FROM TENGIZ MARKED THE FIRST EXPORT OF OIL FROM THE JOINT VENTURE OPTIMISTS FROM KAZAKHSTAN SAY ITS PORTION OF THE CASPIAN SEA COULD CONTAIN A MAMMOTH 35 BILLION BARRELS OF CRUDE OIL EQUIVALENT TO SOME OF THE LARGEST FIELDS EVER DISCOVERED THEY SAY IT WOULD ECLIPSE THE TENGIZ FIELD IN SIZE AND WOULD QUICKLY MATCH ITS PEAK PRODUCTION THE CHEVRON JOINT VENTURE IS CURRENTLY PRODUCING 65000 BARRELS OF OIL A DAY AND HOPES TO DOUBLE THAT BY YEAR'S END BY 2010 PRODUCTION IS EXPECTED TO PEAK AT 700000 BARRELS A DAY IN MIDAPRIL CHASE MANHATTAN BANK ORGANIZED HOUSTON MEETINGS BETWEEN KAZAKH OIL OFFICIALS AND SEVERAL DOZEN COMPANIES SEEKING DEVELOPMENT MORE THAN 20 WERE INTERESTED AND BY MIDMAY THE SEVEN WERE ASKED TO PARTICIPATE ACCORDING TO PEOPLE FAMILIAR WITH THE PROCESS BHUSHAN BAHREE CONTRIBUTED TO THIS ARTICLE 9306080058 930608 MARKETING & MEDIA CABLETV PLAYERS CONTINUE TO CHOOSE HIGHTECH PARTNERS BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO THE CABLETELEVISION BUSINESS WAS BRIMMING WITH NEW ALLIANCES AT THE INDUSTRY'S BIG ANNUAL TRADE SHOW AS PLAYERS CONTINUED CHOOSING SIDES IN THE COMING CONTEST OVER TECHNOLOGY STANDARDS AND EQUIPMENT FOR INTERACTIVE TELEVISION TIME WARNER INC SAID IT WOULD BECOME A PARTNER OF SILICON GRAPHICS INC TO DEVELOP THE POWERFUL COMPUTER HARDWARE AND SOFTWARE FOR DELIVERING A VAST ARRAY OF INTERACTIVE MULTIMEDIA SERVICES IN A TEST SYSTEM IN ORLANDO FLA THE DEAL SIGNALS YET ANOTHER PARTNERSHIP BETWEEN CABLE AND COMPUTER COMPANIES AS BOTH INDUSTRIES BRACE FOR A NEW AGE OF TELEVISION WHEN VIEWERS WILL DO MORE THAN JUST WATCH THEIR TV SET ON SUNDAY MOTOROLA INC SCIENTIFICATLANTA INC AND A JOINT VENTURE OF APPLE COMPUTER INC AND INTERNATIONAL BUSINESS MACHINES CORP TENTATIVELY AGREED TO JOINTLY DEVELOP DIGITAL CABLETV CONVERTER BOXES THAT WOULD DELIVER INTERACTIVE AND MULTIMEDIA SERVICES INTO HOMES THEN DSC COMMUNICATIONS CORP YESTERDAY SAID IT WOULD COOPERATE WITH SCIENTIFICATLANTA IN THE DELIVERY OF ADVANCED VIDEO AND RELATED SERVICES TO NETWORK PROVIDERS SEPARATELY GENERAL INSTRUMENT CORP SAID CABLE OPERATOR TELECOMMUNICATIONS INC AGREED TO BUY AS MANY AS ONE MILLION NEW TV CONVERTER BOXES FROM IT THAT WILL CARRY DIGITAL COMPRESSION CAPABILITY FOR VASTLY EXPANDING THE NUMBER OF CABLETV CHANNELS DELIVERED INTO THE HOME AND IN STILL ANOTHER ALLIANCE THIS ONE ON THE PROGRAMMING SIDE RH MACY & CO SAID THAT IN STARTING ITS OWN NEW HOMESHOPPING SERVICE IT WOULD TURN TO A RIVAL HOME SHOPPING NETWORK INC FOR ORDER FULFILLMENT AND CUSTOMER SERVICE FUNCTIONS HOME SHOPPING IS REGARDED AS HAVING SOME OF THE MOST SOPHISTICATED PHONEORDERING SYSTEMS IN THE BUSINESS IN THE PACT WITH SILICON GRAPHICS TIME WARNER THE US'S SECONDLARGEST CABLE OPERATOR PLANS TO USE THE COMPUTER COMPANY'S DIGITAL VIDEO SERVERS TO LET CABLE SYSTEMS STORE WHOLE LIBRARIES OF MOVIES AND RETRIEVE THEM INSTANTLY WHEN ORDERED BY VIEWERS THE SERVERS WHICH HAVE ENORMOUS MEMORY AND REQUIRE MASSIVE SWITCHING CAPACITY CAN STORE DIGITAL SIGNALS OF ANY KIND VIDEO VOICE AND DATA SILICON GRAPHICS WILL ALSO CONTRIBUTE A POWERFUL COMPUTER CHIP FOR THE TVSET CONVERTER BOXES AND SOFTWARE THAT ALLOWS THE VARIOUS COMPONENTS TO TALK TO ONE ANOTHER THE CHIP WILL BE USED IN THE BOXES THAT TIME WARNER RECENTLY SAID IT WOULD ORDER FROM SCIENTIFICATLANTA A NUMBER OF COMPUTER GIANTS INCLUDING INTEL CORP MICROSOFT CORP HEWLETTPACKARD CO ARE IN THE RACE TO MAKE THE NEXT GENERATION OF CABLE TV EQUIPMENT BUT SILICON GRAPHICS HAS SOME ADVANTAGES INCLUDING THE ABILITY OF ITS EXISTING TECHNOLOGY TO MANIPULATE AND DISPLAY COMPLEX IMAGES THE SETTOP BOX OF TOMORROW WILL BE A COMPUTER A VERY POWERFUL COMPUTER SAYS JIM CHIDDIX A SENIOR VICE PRESIDENT OF TIME WARNER CABLE WITH ALL THIS TECHNOLOGY TIME WARNER HOPES TO DELIVER INTERACTIVE GAMES SHOPPING SERVICES PICTURE PHONES AND MOVIESONDEMAND THAT WILL HAVE VIRTUAL VCR FEATURES TO LET USERS PAUSE STOP OR REWIND INITIAL PLANS CALL FOR RESEARCH AND DEVELOPMENT FUNDING FROM TIME WARNER BUT FINANCIAL TERMS WEREN'T DISCLOSED THE AGREEMENT WITH SILICON GRAPHICS MARKS THE FIRST DEAL TIME WARNER HAS MADE SINCE IT JOINED WITH RIVAL TELECOMMUNICATIONS INC LAST WEEK IN VOWING TO INVEST IN HARDWARE AND SOFTWARE WITH AN OPEN ARCHITECTURE IN AN ATTEMPT TO IMPOSE A COMMON STANDARD ON THE ENTIRE CABLE INDUSTRY 9306080057 930608 OPEC CONFRONTS KUWAIT GENEVA OPEC'S OIL MINISTERS BEGAN EFFORTS TO MODERATE KUWAIT'S DEMANDS TO PRODUCE SIGNIFICANTLY MORE OIL IN THE THIRD QUARTER IN TALKS THAT BEGAN HERE YESTERDAY SEVERAL LEADING OIL MINISTERS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES EXPRESSED CONCERN THAT THE OIL MARKET COULDN'T ABSORB MUCH HIGHER SUPPLIES AMONG THOSE CALLING FOR CAUTION WAS ALIRIO PARRA THE VENEZUELAN OIL MINISTER WHO IS ALSO PRESIDENT OF OPEC IT IS NO GOOD SETTING SUPPLY LEVELS TO MEET DEMAND WHICH MAY NEVER MATERIALIZE HE SAID ON ARRIVAL THE MARKET IS SENDING SIGNALS THAT ARE A WARNING ALI AHMAD ALBAGHLI KUWAIT'S OIL MINISTER IS SURE TO REMIND OTHERS OF THE PROMISE HE CLAIMS THEY MADE EARLIER THIS YEAR TO LET KUWAIT PRODUCE MORE OIL IN THE THIRD QUARTER BUT KUWAITI INSISTENCE THAT THIS COMMITMENT BE HONORED THREATENS TO OPEN A PANDORA'S BOX FOR OPEC SOME DELEGATES SUGGESTED ANY INCREASE IN KUWAIT'S PRODUCTION QUOTA IS LIKELY TO TRIGGER DEMANDS FOR HIGHER ALLOCATIONS FROM OTHERS INCLUDING IRAN AND NIGERIA 9306080056 930608 INTERNATIONAL KMART'S CZECH INVASION LURCHES ALONG PROBLEMS ABOUND IN REFURBISHING 13STORE CHAIN BY NEIL KING JR SPECIAL TO THE WALL STREET JOURNAL PRAGUE FOR DON MACNEILL KMART CORP'S TOP GUN IN CENTRAL EUROPE IT WILL BE A MOMENT GOOD ENOUGH TO MAKE UP FOR MONTHS OF TOIL AND TROUBLE CAN YOU IMAGINE HE ASKS AS HE STANDS OUTSIDE KMART'S PARTIALLY REFURBISHED STORE IN CENTRAL PRAGUE CAPITAL OF THE NEW CZECH REPUBLIC CAN YOU IMAGINE A BIG RED K' RIGHT UP THERE I'M LOOKING FORWARD TO THAT I REALLY AM IT WON'T HAPPEN RIGHT AWAY KMART BOUGHT THE HUGE MAJ DEPARTMENT STORE A YEAR AGO AS PART OF A 13STORE CHAIN THAT SPRAWLS ACROSS MUCH OF THE FORMER CZECHOSLOVAKIA BUT THE GOING HAS BEEN VERY SLOW SAYS MR MACNEILL WHO IS MANAGING DIRECTOR AND CHIEF OPERATING OFFICER FOR KMART'S ACTIVITIES IN THE CZECH REPUBLIC SLOVAKIA AND EASTERN EUROPE KMART EXECUTIVES AT THE TROY MICH HEADQUARTERS OF AMERICA'S SECONDLARGEST RETAILER ARE DETERMINED TO PUSH AHEAD SQUEEZED ON ITS HOME TURF WHERE KMART FOR DECADES THRIVED ON EXPLOSIVE GROWTH THE COMPANY SEES ITS MODEST VENTURE HERE AS NOTHING LESS THAN A BEACHHEAD FOR AN INVASION OF EUROPE NEGOTIATIONS ARE UNDER WAY TO BUY A SIMILAR CHAIN IN HUNGARY FROM THERE COMPANY OFFICIALS SAY THE BIG K COULD SPROUT ACROSS AUSTRIA POLAND AND FURTHER EAST IF THE STRATEGY SUCCEEDS IT COULD TURN INTO ONE OF THE BIGGEST OVERSEAS VENTURES YET FOR A US RETAILER INDUSTRY EXPERTS THROW A HEALTHY DOSE OF SKEPTICISM ON ALL THAT ALTHOUGH TOYS R US INC HAS OPENED A FEW STORES IN WESTERN EUROPE FEW OTHER AMERICAN RETAILING GIANTS HAVE MADE THE ATTEMPT AND FEW ARE EXPECTED TO FOLLOW KMART THAT MIGHT SOUND SURPRISING CONSIDERING THAT THE FORMER SOVIET BLOC OFFERS SOME 400 MILLION CONSUMERS WITH PENTUP DEMANDS AND A DESIRE TO BE MORE WESTERN BUT AS KMART IS LEARNING IT ISN'T THAT EASY THE CZECH AND SLOVAK STORES COME LADEN WITH DECADES OF COMMISTERA PRACTICES THAT MUST BE ROOTED OUT ONE BY ONE AND IN ANY CASE IT'S AWFULLY HARD TO OPERATE ACROSS THE WATER SAYS JEFFREY EDELMAN A RETAIL ANALYST WITH THE NEW YORK BROKERAGE FIRM CJ LAWRENCE INC IT'S ONE THING TO OPEN UP IN MEXICO AND CANADA BUT THE DISTRIBUTION HASSLES ARE JUST TOO BIG WHEN IT COMES TO EXPORTING AN ENTIRE STORE CONCEPT OVERSEAS BEFORE NOW KMART HAD HARDLY SET FOOT OUTSIDE NORTH AMERICA ITS ONLY OTHER OFFSHORE HOLDING IS A 22 SHARE IN COLES MYER LTD AUSTRALIA'S LARGEST RETAILER YET COMPANY OFFICIALS SAY THE LOGIC OF THE MOVE COULDN'T BE SIMPLER WE'RE BOXED IN IN THE US SAYS MR MACNEILL A NONONSENSE BRITISH BUSINESSMAN WHO WAS HIRED IN NOVEMBER TO DIRECT KMART'S CENTRAL EUROPEAN EXPANSION ADDS JOSEPH THOMAS EXECUTIVE VICE PRESIDENT OF KMART'S INTERNATIONAL DIVISION THE DAYS WHEN WE COULD OPEN 100 OR 150 NEW STORES A YEAR IN THE US ARE GONE FOREVER WHEN THE CZECH PROPOSAL LANDED ON MR THOMAS'S DESK IN FEBRUARY 1991 IT SPARKED IMMEDIATE INTEREST KMART WOULD HAVE THE CHANCE TO SELECT THE BEST STORES IN THE BIGGEST CITIES FROM THE HUGE STATEOWNED PRIOR CHAIN MOREOVER KMART WOULD BE PLUNGING INTO A POOL ESSENTIALLY FREE OF FELLOW AMERICAN CUTRATE RETAILING SHARKS NO WALMARTS NO TARGETS NOT A SINGLE SUPERWAREHOUSE STORE IN ALL THE LAND AND THE CZECH AND SLOVAK MARKET SITS AT THE NAVEL OF CENTRAL EUROPE WITHIN A DAY'S DRIVE OF TENS OF MILLIONS OF OTHER HUNGRY SHOPPERS WHAT WE SAW THERE MR THOMAS SAYS IS A GOOD OPPORTUNITY TO DOMINATE SO KMART PLUNKED DOWN NEARLY 120 MILLION TO BUY AND RENOVATE 13 STORES STARTING IN MAY 1992 THAT IS PEANUTS COMPARED WITH THE 3 BILLION FACELIFT KMART IS CARRYING OUT IN NORTH AMERICA BUT IT MARKS A SIGNIFICANT STEP NONETHELESS AND ONE FRAUGHT WITH PROBLEMS FOR ONE THING WHAT KMART BOUGHT WAS A CHAIN OF STORES ONLY IN THEORY THE CZECHOSLOVAK RETAILING SECTOR OCE A MONSTROSITY OF CENTRAL PLANNING BROKE APART SOON AFTER THE COMMUNIST COLLAPSE IN 1989 BY THE TIME KMART CAME ALONG MOST OF THE STORES WERE EITHER WINGING IT ALONE OR LIMPING ALONG AS CLUSTERS OF THREE OR FOUR WHAT PASSED FOR INVENTORY MADE THE AMERICANS CRINGE WAREHOUSES BY THE DOZEN BULGED WITH SWEATERS DRESSES AND UNDERWEAR FROM THE MID1980S WHEN AN ITEM DIDN'T SELL MR MACNEILL EXPLAINS IT WAS SIMPLY SENT BACK TO THE WAREHOUSE AND THEN RETURNED TO THE SHELVES A FEW YEARS LATER FOR ANOTHER TRY THIS WAS TERRIFYING STUFF FOR A COMPANY THAT ALWAYS UNLOADED SLOWSELLING ITEMS AT GIVEAWAY PRICES BY ANNOUNCING BLUELIGHT SPECIALS THAT LAST 30 MINUTES OR LESS EVEN TODAY THE MARKDOWN IS A MYSTERIOUS CONCEPT IN A LAND WHERE HOLDING A SALE VANISHED FROM THE COMMERCIAL REPERTOIRE 45 YEARS AGO MR MACNEILL DESCRIBES ONE OF HIS VISITS TO THE COMPANY'S STORE IN BRNO THE SECONDLARGEST CZECH CITY THEY'D BEEN RUNNING THE SAME BLUELIGHT SPECIAL FOR TWO DAYS HE SAYS SO I TOOK A LOOK AND FOUND A PILE OF FIVEYEAROLD SWEATERS THAT NO ONE WANTED EVEN IN 1988 SURE THEY WERE A LOT CHEAPER THAN THE DAY BEFORE BUT THEY WERE NO BARGAIN EQUALLY ODD ARE THE STORES THEMSELVES KMART OWNS NEARLY 4200 SPRAWLING ONESTORY OUTLETS AND SPECIALTY STORES ACROSS THE US AND CANADA MOSTLY IN SUBURBIA WHERE PARKING SPACE ABOUNDS HERE THE STORES ARE ALL MULTISTORY DOWNTOWN AND WITHOUT PARKING INSIDE SHOPPERS MUST ELBOW THEIR WAY THROUGH DIM CORRIDORS AND ALL BUT PLEAD FOR A CLERK TO SHOW THEM A PAIR OF SOCKS THE COMPANY HAS SENT ONLY SEVEN EXPATRIATE MANAGERS TO HELP REORGANIZE A NETWORK WITH 5600 EMPLOYEES FUNDAMENTALS CAME FIRST A NEW COMPUTER SYSTEM A MANAGEMENT STREAMLINING AN INITIAL STAB AT CENTRALIZED BUYING AND UNIFORM PRICES STILL ONLY HALF THE PRAGUE STORE BEARS THE KMART STAMP HARDLY A FINGER HAS BEEN LAID ON THE 12 OTHER STORES EVEN ON THOSE FLOORS AT MAJ THAT HAVE BEEN REVAMPED WHERE SALES CLERKS BUSTLE ABOUT IN NEW RED VESTS AND NAME TAGS ALL IS NOT UP TO SNUFF JUST WATCH MR MACNEILL SAYS STRIDING UP TO A RACK OF WOMEN'S DRESSES THERE ARE SUPPOSED TO BE FIVE SIZES HERE BUT I'LL BET THERE'S ONLY ONE YEP SEE WHAT I MEAN I TELL YOU IT'S A SLOW PROCESS TURNING THE OLD PRIOR STORES INTO REAL KMARTS INVOLVES DOZENS OF DETAILS SOME OF WHICH MEAN CHANGING OLD HABITS RENOVATION OF THE TOP FLOOR OF THE MAJ STORE WAS COMPLETED IN EARLY MAY SALES CLERKS MOSTLY WOMEN ACCUSTOMED TO LEANING ON COUNTERTOPS WERE SENT TO THE FLOOR WEARING TAGS ANNOUNCING I'M HERE FOR YOU PROBLEM WAS MANY OF THEM WEREN'T IT DIDN'T TAKE US LONG TO REALIZE THE CLERKS WERE FINDING PLACES TO HIDE MR MACNEILL RECALLS THEY FELT A LITTLE SHY ABOUT GETTING OUT AMONG THE CUSTOMERS THEIR HIDING SPOTS ARE GONE NOW THAT'S WHY KMART ISN'T READY TO PUT ITS NAME ON ANY OF THE STORES IT BOUGHT THOSE FURTHEST DOWN THE RENOVATION LIST MAY NOT GET THEIR BIG K UNTIL AS LATE AS NEXT SPRING MORE TOUGH TIMES ARE AHEAD AS KMART GETS ON WITH STREAMLINING AND REORGANIZATION WHICH WILL MEAN LAYOFFS AT THE MAJ STORE ALONE THE WORK FORCE OF 700 INCLUDING TOILET ATTENDANTS AND CAFETERIA WORKERS WILL BE CUT NEARLY IN HALF BY YEAR'S END 9306080055 930608 INTERNATIONAL INS FAILS TO QUASH GROUPS SMUGGLING CHINESE INTO US BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHILE US OFFICIALS PURSUE DIPLOMATIC EFFORTS TO HALT THE FLOW OF UNDOCUMENTED CHINESE BOAT PEOPLE INTO THE US THERE HAS BEEN LITTLE SUCCESS IN BUSTING CRIME SYNDICATES BEHIND THE OPERATIONS US OFFICIALS BELIEVE ORGANIZED CRIME WAS BEHIND THE ATTEMPT TO SMUGGLE ABOUT 300 CHINESE NATIONALS INTO NEW YORK ON SUNDAY A 150FOOT VESSEL THE GOLDEN VENTURE RAN AGROUND ON A SANDBAR ABOUT 200 YARDS FROM A SWIMMING BEACH EIGHT PEOPLE DIED AFTER JUMPING INTO THE CHILLY WATERS BUT DESPITE THE PAST DETENTION OF HUNDREDS OF CHINESE IMMIGRANTS AND THE ARRESTS OF CREW MEMBERS WHO HAVE BROUGHT THEM TO US SHORES THERE HAS BEEN NO PROSECUTION OF THE INDIVIDUALS WHO ORGANIZE THE OPERATIONS SAID DUKE AUSTIN A SPOKESMAN FOR THE IMMIGRATION AND NATURALIZATION SERVICE THE AGENCY IS WORKING TO BREAK UP THE SYNDICATES THROUGH ITS LAW ENFORCEMENT EFFORT DUBBED OPERATION DRAGON IN A STATEMENT THE INS SAID THAT SUNDAY'S INCIDENT WAS THE LATEST IN A SERIES OF ATTEMPTS THAT INVOLVE CRIMINAL SYNDICATES WHICH EXPLOIT INDIVIDUAL MIGRANTS BY PLACING THE BULK OF THEM IN INDENTURED SERVITUDE HUGE PROFITS ARE FUELING THESE RELATIVELY RECENT ILLEGAL SMUGGLING OPERATIONS FROM CHINA ACCORDING TO MR AUSTIN SINCE AUGUST 1991 WHEN THE FIRST SHIP ARRIVED A TOTAL OF 16 BOATS CARRYING 2200 UNDOCUMENTED IMMIGRANTS HAVE REACHED US SHORES OTHER BOATS HAVE BEEN TURNED AWAY HE SAID WHILE SOME LANDED IN MEXICO JUST SOUTH OF CALIFORNIA IN ADDITION THE NUMBER OF PASSENGERS HAS BEEN STEADILY INCREASING THE FIRST SHIP WHICH LANDED IN LOS ANGELES CARRIED 131 PASSENGERS INS OFFICIALS SAID IMMIGRANTS WHO ARE SMUGGLED INTO THE US ARE SOMETIMES FORCED TO LIVE AS INDENTURED SERVANTS PERHAPS AS PROSTITUTES OR IN THE DRUG TRADE TO REPAY THE FEE OF AS MUCH AS 30000 CHARGED BY THE SYNDICATES FOR ARRANGING THE TRIP A STATE DEPARTMENT STATEMENT SAID THE CHINESE GOVERNMENT HAS RESPONDED POSITIVELY TO AMERICAN INQUIRIES ABOUT THE ILLEGAL IMMIGRANT PROBLEM A SENIOR CHINESE OFFICIAL POINTED OUT THAT THE MAJORITY OF THESE MIGRANTS ARE VICTIMS OF INTERNATIONAL CRIMINAL ORGANIZATIONS FROM HONG KONG TAIWAN THE US AND CHINA THE STATEMENT SAID SINCE MANY SUCH CRIMINAL ORGANIZATIONS ARE HEADQUARTERED IN OTHER COUNTRIES HE EXPRESSED HOPE THAT THERE WOULD BE GREATER COOPERATION WITH THE US TO PREVENT THESE ACTIVITIES IN ITS STATEMENT THE INS SAID THERE IS A COORDINATED INTERAGENCY STRATEGY TO COMBAT THE SMUGGLING THE STRATEGY INCLUDES INCREASED SURVEILLANCE OF SUSPECT VESSELS OVERSEAS AND ALONG US COASTS AND THE DETENTION OF ALL UNDOCUMENTED ARRIVALS EXCEPT MINORS AND THE ILL INCLUDING THOSE WHO ARRIVED IN NEW YORK SUNDAY THE CHINESE WHO ARE SEEKING POLITICAL ASYLUM HAVE BEEN DETAINED PENDING DETERMINATION OF THEIR STATUS 9306080054 930608 BUSINESS BRIEF SYMANTEC CORP CONTACT SOFTWARE IS ACQUIRED IN 47 MILLION TRANSACTION SYMANTEC CORP COMPLETED ITS 47 MILLION ACQUISITION OF CLOSELY HELD CONTACT SOFTWARE INTERNATIONAL INC AND SAID THE TRANSACTION WILL RESULT IN A 75 MILLION CHARGE TO EARNINGS FOR ITS FISCAL FOURTH QUARTER ENDING JULY 2 TERMS CALL FOR SYMANTEC CUPERTINO CALIF TO SWAP 27 MILLION SHARES TO ACQUIRE THE COMPANY WHICH MAKES CONTACT SOFTWARE OR PROGRAMS USED BY EXECUTIVES SALESPEOPLE AND OTHERS TO KEEP TRACK OF BUSINESS CONTACTS SYMANTEC ALSO A SOFTWARE MAKER HAD 238 MILLION SHARES OUTSTANDING AS OF APRIL 2 SYMANTEC WOULDN'T ESTIMATE THE EFFECT OF THE 75 MILLION CHARGE ON FOURTHQUARTER EARNINGS HOWEVER ANALYSTS HAVE FORECAST A NET LOSS OF 21 CENTS A SHARE FOR THE PERIOD INCLUDING THE CHARGE FOR THE NINE MONTHS ENDED APRIL 2 SYMANTEC HAD A NET LOSS OF 115 MILLION OR 49 CENTS A SHARE ON REVENUE OF 206 MILLION IN COMPOSITE TRADING YESTERDAY ON THE OVERTHECOUNTER MARKET SYMANTEC CLOSED AT 16625 DOWN 875 CENTS 9306080053 930608 INTERNATIONAL KOREA TALKS FAIL AS NORTH SPURNS SEOUL DELEGATES BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA A PROPOSED SENIORLEVEL MEETING BETWEEN NORTH AND SOUTH KOREAN OFFICIALS FIZZLED TODAY AFTER PYONGYANG DECLINED TO NAME ITS DELEGATION GOVERNMENT OFFICIALS SAID SEOUL ANNOUNCED YESTERDAY IT WOULD MEET WITH PYONGYANG TO DISCUSS NORTH KOREA'S SUSPECTED NUCLEAR WEAPONS PROGRAM AND ITS MARCH 12 DECISION TO WITHDRAW FROM THE INTERNATIONAL NUCLEAR NONPROLIFERATION TREATY NORTH KOREA HAS SAID IT IS EAGER TO TALK BUT NOT ABOUT ITS NUCLEAR CAPABILITIES PYONGYANG DIDN'T RESPOND TO A TELEPHONE MESSAGE THIS MORNING FROM SOUTH KOREA CONFIRMING IT WOULD SEND TWO REPRESENTATIVES TO THE MEETING SITE ON THE PENINSULA'S DEMILITARIZED ZONE IT IS UNUSUAL FOR NORTH KOREA NOT TO NOTIFY US OF THE NAMES OF ITS DELEGATES DESPITE ITS EARLIER PROMISE TO THE CONTRARY SAID SOUTH KOREA'S DEPUTY PRIME MINISTER HAN WAN SANG IT SEEMS THERE CAN BE NO CONTACT ON TUESDAY THE SNUBBING OF SOUTH KOREA'S DELEGATION IS EXPECTED TO CHILL THE ALREADY COOL DIPLOMATIC CLIMATE BETWEEN PYONGYANG AND THE COALITION OF GOVERNMENTS HOPING TO PERSUADE THE NORTH TO RETURN TO THE TREATY USNORTH KOREAN TALKS IN NEW YORK LAST WEEK FAILED TO ADVANCE THE ISSUE YESTERDAY THE US SAID IT WILL MEET AGAIN THURSDAY WITH THE NORTH KOREANS IN AN EFFORT TO DEFUSE THE CRISIS PYONGYANG'S DECISION TO WITHDRAW FROM THE NONPROLIFERATION TREATY TAKES EFFECT ON SATURDAY THE END OF A THREEMONTH WAITING PERIOD THE US HAS SAID IT WOULD PRESS FOR SANCTIONS IF DIPLOMATIC EFFORTS FAIL BY DEFINITION WE'RE CLOSER TO SANCTIONS SAYS A EUROPEAN DIPLOMAT BUT THERE IS STILL TIME FOR PYONGYANG TO RECONSIDER NORTH KOREA HAS WARNED IT WOULD TAKE MEASURES OF SELFDEFENSE IN RESPONSE TO SANCTIONS WHICH MOST LIKELY WOULD COME IN A RESOLUTION PASSED BY THE UNITED NATIONS SECURITY COUNCIL THE COUNCIL ALREADY HAS PASSED A RESOLUTION URGING NORTH KOREA TO REVERSE ITS DECISION SOUTH KOREA MADE THE INITIAL OFFER FOR DIRECT CONTACT ON MAY 21 FOLLOWED BY NORTH KOREA'S COUNTERPROPOSAL FOR A SENIORLEVEL EXCHANGE AS A PRELUDE TO A HISTORIC SUMMIT THAT FUELED HOPES THAT PYONGYANG WAS LOOKING FOR A DIPLOMATIC WAY OUT OF ITS PREDICAMENT IN RESPONSE SEOUL INSISTED THAT NORTH KOREA'S NUCLEAR PROGRAM LEAD THE AGENDA ON FRIDAY THE DAY AFTER THE DISAPPOINTING ROUND OF TALKS IN NEW YORK PYONGYANG SAID IT WAS WILLING TO MEET TODAY BUT WARNED SOUTH KOREA AGAINST IMPOSING CONDITIONS ON THE TALKS CHINA THE NORTH KOREA'S ONLY ALLY ON THE UN SECURITY COUNCIL HAS BEEN PROMOTING DIRECT TALKS TO GIVE THE STALINIST REGIME A WAY OUT OF A CONFRONTATION WE'RE DOING THIS IN RESPONSE TO WHAT CHINA HAS BEEN SAYING SAID AN ADVISER TO SOUTH KOREA'S NATIONAL SECURITY PLANNING AGENCY WE'RE TRYING TO DEPRIVE CHINA OF AN EXCUSE TO BACK OUT OF SANCTIONS IF AND WHEN IT COMES UP FOR A VOTE INTELLIGENCE AGENCIES BELIEVE NORTH KOREA WILL BE CAPABLE OF PRODUCING ATOMIC WEAPONS WITHIN THE YEAR OFFICIALS FROM THE INTERNATIONAL ATOMIC ENERGY AGENCY WERE SCHEDULED TO CONDUCT AN INSPECTION OF NORTH KOREA'S SUSPECTED NUCLEAR FACILITIES WHEN PYONGYANG ANNOUNCED IT WOULD WITHDRAW FROM THE TREATY 9306080052 930608 POLITICS & POLICY US IS INVESTIGATING ALLEGED TORTURE OF TWO SOMALIS BY ANGERED SOLDIERS BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON US MILITARY AUTHORITIES ARE INVESTIGATING A RECENT INCIDENT IN WHICH ARMY SOLDIERS ALLEGEDLY TORTURED TWO SOMALIS WITH ELECTRIC SHOCKS DEFENSE DEPARTMENT OFFICIALS SAID THE INCIDENT TOOK PLACE ON MAY 26 IN THE SMALL TOWN OF BALE DOGLE NOT FAR FROM THE SOMALI CAPITAL OF MOGADISHU ACCORDING TO A PRELIMINARY INTERNAL REPORT AT LEAST TWO ARMY NONCOMMISSIONED OFFICERS THAT IS CORPORALS OR SERGEANTS WERE ANGERED WHEN SEVERAL ITEMS INCLUDING A CASSETTE TAPE PLAYER WERE STOLEN FROM AN ARMY TRUCK THE SOLDIERS THEN ALLEGEDLY USED A HANDCRANKED ARMY TA312 FIELD TELEPHONE GENERATOR TO SHOCK TWO PEOPLE THEY SUSPECTED OF COMMITTING THE THEFT SOMETHING HAPPENED BUT WE'RE NOT SURE WHAT SAID LT COL MARILLA CUSHMAN AN ARMY SPOKESWOMAN AIR FORCE LT COL MARK MARTENS A SPOKESMAN FOR THE CENTRAL COMMAND THE US GEOGRAPHIC COMMAND FOR EASTERN AFRICA AND THE MIDDLE EAST ADDED THERE HAVE BEEN ALLEGATIONS OF AN AGGRAVATED ASSAULT AND A PRELIMINARY INVESTIGATION IS ONGOING THE INQUIRY BEGAN ON MAY 27 THE DAY AFTER THE INCIDENT OCCURRED ANOTHER OFFICIAL SAID THE INCIDENT WAS REPORTED BY OTHER US SOLDIERS OFFICIALS SAID AT THAT POINT THE ALLEGED VICTIMS WERE TREATED BY US MEDICAL PERSONNEL AND RELEASED THE MEDICS REPORTED THAT NO PERMANENT DAMAGE WAS INFLICTED THE OFFICIALS SAID THE INCIDENT IS ESPECIALLY DISTURBING TO PENTAGON OFFICIALS BECAUSE IT CONTRASTS SHARPLY WITH THE GENERALLY GOOD DISCIPLINE AND HIGH MORALE DEMONSTRATED BY US FORCES DEPLOYED TO SOMALIA UNLIKE THE FORCES OF SOME OF THE 22 OTHER COUNTRIES THAT WERE SENT THERE THE US MILITARY TYPICALLY SHOWED RESTRAINT AND COMPOSURE IN DEALING WITH RIFLETOTING SOMALI TEENAGERS AND ROCKTHROWING CHILDREN THERE HAVE BEEN THOUSANDS OF US TROOPS THROUGH SOMALIA THROUGH SOME VERY TRYING TIMES AND THERE HAVE BEEN VERY FEW INCIDENTS SAID BRIG GEN CHARLES MCCLAIN JR THE ARMY'S CHIEF OF PUBLIC AFFAIRS THE ALLEGATIONS ARE CAUSING UNUSUAL CONCERN AT THE PENTAGON FOR SEVERAL OTHER REASONS OFFICIALS ARE DISTURBED THAT THE INCIDENT INVOLVES NONCOMMISSIONED OFFICERS WHO ARE SUPPOSED TO DISPLAY LEADERSHIP QUALITIES MOREOVER THE INCIDENT DIDN'T INVOLVE USING INHUMANE MEANS FOR A WORTHWHILE END SUCH AS SAVING A COMRADE'S LIFE BUT RATHER WAS ALLEGEDLY DONE IN ORDER TO RECOVER A TAPE DECK SEEN IN CONJUNCTION WITH LAST WEEKEND'S FIREFIGHT IN MOGADISHU IN WHICH 23 PAKISTANI SOLDIERS IN THE UNITED NATIONS PEACEKEEPING FORCE WERE KILLED THE INCIDENT MAY REFLECT HIGHER TENSION AND LOWER MORALE AMONG THE 4200 US TROOPS STILL IN SOMALIA US TROOPS WERE FIRST SENT TO SOMALIA ON DEC 9 TO ESTABLISH AN ENVIRONMENT IN WHICH FOOD AID COULD REACH STARVING SOMALIS AS US TROOP LEVELS HAVE DECLINED FROM A JANUARY PEAK OF 26000 FRUSTRATION HAS GROWN US OFFICERS SAID NOW QUESTIONS ARE BEING RAISED ABOUT WHETHER THE US TROOPS IN BALE DOGLE ARE ADEQUATELY SUPERVISED OR WHETHER COMMAND ARRANGEMENTS HAVE BLURRED OR WEAKENED AS CONTROL OF US PERSONNEL HAS SHIFTED TO THE UN IN ADDITION THERE IS SOME CONCERN THAT ALCOHOL MAY HAVE BEEN INVOLVED IN THE INCIDENT CONSUMPTION OF ALCOHOLIC BEVERAGES BY US TROOPS WAS PROHIBITED UNDER US COMMAND BUT HAS BEEN PERMITTED WHILE THE TROOPS ARE UNDER UN CONTROL FINALLY US OFFICIALS ARE DISTURBED BECAUSE THE ALLEGED METHOD OF TORTURE WOULD HAVE REQUIRED PREMEDITATION INVESTIGATORS WERE SENT FROM MOGADISHU TO BALE DOGLE LAST WEEK TO LOOK INTO THE INCIDENT SOME PROBLEMS IN PURSUING IT ALREADY HAVE DEVELOPED MOST NOTABLY THAT THE ALLEGED VICTIMS AREN'T AVAILABLE BUT AN OFFICIAL SAID THAT THERE ARE WITNESSES 9306080051 930608 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY MAY 26 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9306080050 930608 TECHNOLOGY BRIEF HAYES MICROCOMPUTER PRODUCTS INC TANDY AND 10 SMALLER FIRMS ARE NAMED IN PATENT SUIT HAYES MICROCOMPUTER PRODUCTS INC IS SUING TANDY CORP AND 10 SMALLER COMPANIES FOR ALLEGEDLY COPYING A MODEM DESIGN THAT HAYES PATENTED IN 1985 THE SUIT FILED LAST WEEK IN US DISTRICT COURT IN ATLANTA CONTENDS THAT TANDY AND THE OTHER COMPANIES MANUFACTURE AND SELL THESE MODEMS AND COMPETE WITH HAYES MODEMS ARE DEVICES THAT ALLOW COMPUTERS TO COMMUNICATE WITH ONE ANOTHER OVER TELEPHONE LINES HAYES A NORCROSS GA MANUFACTURER OF MODEMS HAS SUCCESSFULLY SUED OTHER COMPANIES FOR COPYING ITS DESIGN IN 1991 A FEDERAL JURY IN SAN FRANCISCO AWARDED HAYES 35 MILLION AFTER IT FOUND THREE SILICON VALLEY COMPANIES VIOLATED THE PATENT A JUDGE LATER INCREASED THE AWARD TO 10 MILLION TANDY BASED IN FORT WORTH TEXAS DIDN'T COMMENT ON THE SUIT HAYES IS SEEKING UNSPECIFIED DAMAGES AND AN INJUNCTION TO STOP CONTINUED INFRINGEMENT ON ITS PATENT 9306080049 930608 UNITED WATER RESOURCES PACT HARRINGTON PARK NJ UNITED WATER RESOURCES SAID IT REACHED AN AGREEMENT WITH SEVERAL ENVIRONMENTAL GROUPS AND REGULATORY AGENCIES IN RELATION TO A DISPUTED WATERSHED AREA IN NORTHERN NEW JERSEY THE AGREEMENT WHICH IN PART ALLOWS HACKENSACK WATER CO A UNIT OF UNITED WATER RESOURCES TO REACQUIRE 355 ACRES OF LAND FOR ITS WATERSHED HOLDINGS STILL NEEDS TO BE APPROVED BY THE STATE'S WATERSHED PROPERTY REVIEW BOARD AND THE BOARD OF REGULATORY COMMISSIONERS 9306080048 930608 REVIEW & OUTLOOK EDITORIAL ROSS AND THE REPUBLICANS KAY BAILEY HUTCHISON'S STUNNING 67 VICTORY IN THE TEXAS SENATE RACE SENDS IMPORTANT MESSAGES TO BOTH MAJOR POLITICAL PARTIES ON THE DEMOCRATIC SIDE IT'S WIDELY UNDERSTOOD THAT A TWOTOONE LANDSLIDE IN A HIGHLY COMPETITIVE STATE CAN'T DESPITE WHITE HOUSE EXCUSES BE BLAMED MERELY ON A POOR CANDIDATE IN THE WORDS OF THE TEXAS DEMOCRATIC STATE CHAIRMAN BOB SLAGLE BILL CLINTON HAS BECOME A BATTLESHIP ANCHOR AROUND THE NECKS OF HIS PARTY'S CANDIDATES ON THE REPUBLICAN SIDE THE HUTCHISON LANDSLIDE CLEARLY SHOWS THAT THE GOP CAN WIN BACK THE PEROT VOTERS THE PARTY OBVIOUSLY HAS REASON TO BE NERVOUS ABOUT MR PEROT WHO IS MORE POPULAR NOW THAN WHEN HE WON 19 NATIONWIDE LAST NOVEMBER HIS ATTACKS ON THE CLINTON ECONOMIC PROGRAM ARE SO BITING THAT MANY VOTERS HAVE FORGOTTEN THAT HIS OWN 1992 ECONOMIC PLAN WAS ALSO TAXHEAVY AND PROTECTIONIST TO BOOT MANY REPUBLICANS THINK MR PEROT MAY BE PREPARING A BID TO WREST THE 1996 GOP PRESIDENTIAL NOMINATION FROM MORE CONVENTIONAL CANDIDATES AND WITH HIS MONEY AND RECOGNITION COULD WIN THE LARGEST BLOC OF VOTES IN A DIVIDED FIELD SERIOUS REPUBLICANS HAVE NO TASTE FOR BEING LINKED TO HIS ECLECTIC AND EVERSHIFTING POLICY VIEWS YET IN THE TEXAS RACE ALMOST ALL OF THE 22 OF TEXAS VOTERS WHO BACKED ROSS PEROT LAST YEAR WOUND UP IN MS HUTCHISON'S CORNER IN A MAIL POLL OF MR PEROT'S UNITED WE STAND GROUP SHE WON 84 OF THE BALLOTS IN THE PRIMARY PRECEDING SATURDAY'S RUNOFF INDEED PEROT ADVISER RICHARD FISHER SPENT MORE THAN 3 MILLION ON HIS RACE BUT WON ONLY 8 OF THE VOTE WITH MOST PEROT SUPPORTERS CHOOSING MS HUTCHISON OR TWO OTHER CONSERVATIVES IN TEXAS THE PEROT VOTERS OPTED FOR REPUBLICANS AFTER THEY WERE CONVINCED THEY WEREN'T GOING ALONG WITH BUSINESSASUSUAL IN WASHINGTON MS HUTCHISON REPEATEDLY CALLED FOR REDUCING THE DEFICIT SOLELY THROUGH SPENDING CUTS SHE ALSO TOOK A MODERATE APPROACH TO ABORTION WITHOUT BEING VETOED BY THE RELIGIOUS RIGHT THE LESSON IS THAT THE WAY FOR REPUBLICANS TO CONTAIN MR PEROT IS NOT TO ATTACK HIM BUT TO TRANSCEND HIS POPULIST APPEAL WITH A PRINCIPLED ALTERNATIVE TO CLINTONOMICS REPUBLICANS CAN WIN WHEN THEY FOLLOW RONALD REAGAN'S POLITICAL PLAYBOOK RUNNING PRINCIPLED HARDHITTING CAMPAIGNS OTHER REPUBLICANS ARE FINDING THAT CALLING FOR A NONONSENSE DOWNSIZING OF GOVERNMENT AND DIRECTLY ADDRESSING ISSUES YIELD SURPRISING SUCCESS IN LOS ANGELES TODAY REPUBLICAN MAYORAL CANDIDATE RICHARD RIORDAN IS RUNNING FAR BETTER THAN EXPECTED AND MAY EVEN WIN IF SO IT WILL BE BECAUSE HIS CREDENTIALS AS A BUSINESSMAN AND BACKER OF PRIVATIZATION APPEALED TO MANY PEROT VOTERS MR PEROT SPOKE OVER THE WEEKEND AT A LARGE RALLY IN NEW JERSEY WHICH HOLDS A GOP GUBERNATORIAL PRIMARY TODAY AMONG THE CROWD EASILY THE MOST POPULAR CANDIDATE WAS JIM WALLWORK A BUSINESSMAN WHO HAS CALLED FOR ROLLING BACK ALL OF THE TAX INCREASES IMPOSED BY GOVERNOR JIM FLORIO IT WAS HARD TO FIND MORE THAN A TRACE OF SUPPORT FOR CARY EDWARDS AN ALLY OF FORMER GOV TOM KEAN A LEADING GOP MODERATE BUT SOME PEROT ENTHUSIASTS DID BACK CHRISTINE TODD WHITMAN AN ESTABLISHMENT REPUBLICAN WHO NOW SUPPORTS SCHOOL CHOICE AND TERM LIMITS MR PEROT BURST ON THE NATIONAL SCENE LAST YEAR BECAUSE MANY VOTERS WERE TIRED OF THE PASSIVE BUSH ADMINISTRATION AND ALSO SUSPICIOUS IN THE EVENT CORRECTLY OF BILL CLINTON'S CLAIM TO BE A NEW DEMOCRAT MR PEROT OFFERS AN IMPRESSIVE CRITIQUE OF WHAT AILS OUR POLITICAL SYSTEM BUT PEOPLE ARE UNDERSTANDABLY LEERY OF HIS SOLUTIONS REPUBLICANS CAN RECLAIM HIS LEGIONS IF THEY CAN CONVINCE VOTERS THEY REALLY WANT SPENDING CUTS AND A GROWTHORIENTED ECONOMIC POLICY 9306080047 930608 MONDAY'S MARKETS STOCKS DROP 1301 POINTS BONDS RISE BANK SECTOR SELLOFF SENDS INDEXES LOWER DOLLAR TRADES WEAKER BY ANITA RAGHAVAN AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL A SELLOFF IN FINANCIAL STOCKS LED BROAD MARKET INDEXES MODERATELY LOWER BOND PRICES ROSE AND THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE DROPPED 1301 POINTS TO 353213 STANDARD & POOR'S 500STOCK INDEX SLID 237 TO 44769 AND THE NASDAQ COMPOSITE INDEX SLUMPED 740 TO 69461 HARDEST HIT WERE BANKS AND INSURANCE STOCKS CITICORP FELL 1 3/8 TO 26 3/8 BANKERS TRUST TUMBLED 1 3/4 TO 69 7/8 BANKAMERICA LOST 1 TO 42 AMERICAN INTERNATIONAL GROUP PLUNGED 3 5/8 TO 125 7/8 AND WELLS FARGO PLUMMETED 5 1/4 TO 95 3/4 THE FINANCIAL STOCKS ARE ACTING AS IF INTEREST RATES ARE GOING TO RISE A LOT HIGHER THAN THE 1/4 PERCENTAGE POINT BOOST IN SHORTTERM RATES EXPECTED BY SOME INVESTORS SAID DAVID SHULMAN CHIEF EQUITY STRATEGIST AT SALOMON BROTHERS BOND INVESTORS WERE LOOKING ON THE BRIGHT SIDE HOWEVER THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED NEARLY 1/2 POINT OR NEARLY 5 FOR EACH 1000 FACE AMOUNT JOSEPH LIRO CHIEF ECONOMIST AT SG WARBURG SAID EASING COMMODITY PRICES SPARKED THE BOND MARKET RECOVERY FROM FRIDAY'S SELLOFF AFTER RISING ON A SPURT IN METALS AND GRAIN PRICES THE COMMODITY RESEARCH BUREAU'S INDEX OF 21 FUTURES CONTRACTS HAS DROPPED 25 SINCE MAY 21 IT FELL 053 POINT TO 20629 YESTERDAY MR LIRO SAYS HE BELIEVES THE PRODUCER PRICE REPORT LATER THIS WEEK WILL BE ENCOURAGING FOR THE MARKET AND WILL KEEP THE FEDERAL RESERVE FROM RAISING RATES HE EXPECTS PRODUCER PRICES IN GENERAL TO RISE 01 AND 02 EXCLUDING FOOD AND ENERGY WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX ROSE 009 TO 10760 WE HAVE CLEAR SIGNALS THAT THE RECOVERY IS BUILDING MOMENTUM IN THE US AND THAT IT IS STARTING TO TRICKLE DOWN TO CONTINENTAL EUROPE SAID GILLES BAZYSIRE A FIRST VICE PRESIDENT AT SOCIETE GENERALE'S BROKERAGE UNIT IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 2356 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1149 ISSUES DECLINED AND 771 ADVANCED BOND PRICES ROSE THE YIELD ON THE TREASURY'S 30YEAR BOND FELL TO 687 THE DOLLAR FELL IN LATE NEW YORK TRADING THE DOLLAR WAS QUOTED AT 16205 MARKS AND 10720 YEN COMPARED WITH 16265 MARKS AND 10775 YEN FRIDAY 9306080046 930608 INTERNATIONAL BRIEF TELEFONOS DE MEXICO SA FIRM EXTENDS STOCK BUYBACK BY 140 DAYS TO LIFT SHARES TELECOMMUNICATIONS GIANT TELEFONOS DE MEXICO SA MEXICO CITY EXTENDED THE PERIOD OF A 310 MILLION STOCK BUYBACK FOR AN ADDITIONAL 140 DAYS THE EXTENSION PERIOD TELMEX SAID BEGAN FRIDAY TELMEX ORIGINALLY ANNOUNCED THE BUYBACK APRIL 29 AFTER IT REPORTED WEAKERTHANEXPECTED FIRSTQUARTER EARNINGS WITH NET INCOME DROPPING 43 THE BUYBACK ORIGINALLY WAS TO BE MADE OVER 20 DAYS THE EXTENSION COULD HELP SUPPORT TELMEX'S SHARE PRICE WHICH HAS BEEN UNDER PRESSURE SINCE LAST WEEK FOLLOWING OFFICIAL COMMENTS ABOUT THE COMPANY'S EARNINGS OUTLOOK ON THURSDAY THE COMPANY'S CHIEF FINANCIAL OFFICER TOLD INVESTMENT BANKERS ATTENDING A SMITH BARNEY LATIN AMERICA CONFERENCE IN NEW YORK THAT SECONDQUARTER EARNINGS MAY NOT SHOW MUCH IMPROVEMENT OVER THE FIRST QUARTER HE CITED FOREIGN EXCHANGE LOSSES ON THE COMPANY'S LARGE PORTFOLIO OF YENDENOMINATED DEBT AND CONTINUED ECONOMIC SLUGGISHNESS IN MEXICO YESTERDAY IN NEW YORK STOCK EXCHANGE TRADING TELMEX WAS QUOTED AT 45 DOWN 875 CENTS 9306080045 930608 ICAHN SELLS HIS INTEREST IN TRUMP'S TAJ MAHAL NEW YORK FINANCIER CARL ICAHN LAST WEEK SOLD HIS REMAINING STAKE IN DONALD TRUMP'S TAJ MAHAL CASINO MR ICAHN REPORTEDLY SOLD 150 MILLION FACE AMOUNT OF 1135 TRUMP TAJ MAHAL FUNDING INC FIRST MORTGAGE BONDS FOR MORE THAN DOUBLE WHAT HE PAID FOR THEM IN 1990 THE NEW JERSEY GENERAL PARTNERSHIP IS A SPECIALPURPOSE FINANCING SUBSIDIARY OF TRUMP TAJ MAHAL ASSOCIATES EQUALLY OWNED BY BONDHOLDERS AND MR TRUMP THE BONDS ISSUED IN NOVEMBER 1988 FELL SHARPLY IN LATE 1990 AFTER THE TAJ MAHAL MISSED ITS 473 MILLION INTEREST PAYMENT IN NOVEMBER THAT YEAR MR ICAHN BOUGHT THEM FOR 35 CENTS TO 40 CENTS ON THE DOLLAR IN 1990 AND HELD THEM THROUGH RESTRUCTURING NEGOTIATIONS THE 1135 TAJ MAHAL BONDS WERE ISSUED IN LATE 1991 IN EXCHANGE FOR OLD 14 BONDS ISSUED IN NOVEMBER 1988 MR ICAHN'S TRADING FIRM SAID HE SOLD THE POSITION BECAUSE THE ISSUE REACHED A HIGH WITH LIMITED FURTHER UP SIDE SOME ANALYSTS SAID MR ICAHN COULD BE PLANNING ANOTHER ACQUISITION HIS WAR CHEST HAS BEEN GROWING FOR SOME TIME SAID PHELPS HOYT AN ANALYST AT DUFF & PHELPS/MCM INVESTMENT RESEARCH CO MR ICAHN RAISED AN ESTIMATED 615 MILLION TO 665 MILLION IN RECENT TRANSACTIONS HE ALSO HAS 800 MILLION IN DEBT AND EQUITY INVESTMENTS 9306080044 930608 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/4 HIGH 2 3/4 LOW 2 3/4 NEAR CLOSING BID 2 7/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 313 30 TO 59 DAYS 315 60 TO 89 DAYS 318 90 TO 119 DAYS 324 120 TO 149 DAYS 328 150 TO 229 DAYS 338 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 320 30 DAYS 324 60 DAYS 328 90 DAYS CERTIFICATES OF DEPOSIT 261 ONE MONTH 268 TWO MONTHS 273 THREE MONTHS 291 SIX MONTHS 313 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 314 ONE MONTH 325 THREE MONTHS 342 SIX MONTHS BANKERS ACCEPTANCES 310 30 DAYS 316 60 DAYS 320 90 DAYS 325 120 DAYS 329 150 DAYS 335 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/4 3 1/8 ONE MONTH 3 5/16 3 3/16 TWO MONTHS 3 3/8 3 1/4 THREE MONTHS 3 7/16 3 5/16 FOUR MONTHS 3 1/2 3 3/8 FIVE MONTHS 3 9/16 3 7/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/4 ONE MONTH 3 3/8 THREE MONTHS 3 9/16 SIX MONTHS 3 15/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 6 GERMANY 850 JAPAN 4 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY JUNE 7 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 314 13 WEEKS 330 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 726 60 DAYS 735 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4125 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 725 60 DAYS 735 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 525 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 266 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9306080043 930608 CALENDAR CAPITAL INC SHARES PLUMMET 48 AS MERGER PLANS FAIL FORMER HEARTVALVE MAKER FINDS ODDS ARE AGAINST GAMBLING FIRM VENTURE BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL CALENDAR CAPITAL INC A FORMER ARTIFICIAL HEARTVALVE MAKER SEEKING TO PUT ITS REMAINING CHIPS ON THE GAMBLING INDUSTRY APPEARS TO HAVE DRAWN A BAD HAND SHARES OF THE MINNEAPOLIS CONCERN PLUNGED 90 YESTERDAY CLOSING AT JUST 25 CENTS AFTER THE COMPANY ANNOUNCED THAT ITS PLANNED MERGER WITH LILLY BELLE'S INC A COLORADO GAMBLING COMPANY HAD GONE BUST THE ANNOUNCEMENT APPEARS TO HAVE BROUGHT TO AN END ONE OF THE FLIGHTIER CHAPTERS IN INVESTORS' INFATUATION WITH GAMBLING STOCKS CALENDAR USED TO BE KNOWN AS AORTECH INC ITSELF BORN OF THE BANKRUPTCY REORGANIZATION OF ANGICOR LTD THAT MAKER AND DISTRIBUTOR OF CARDIOVASCULAR PRODUCTS TRADED ON THE LOCAL OVERTHECOUNTER MARKET UNTIL IT LISTED ON NASDAQ IN MID1991 BUT THE HEARTVALVE BUSINESS DIDN'T PROVE A SUCCESS SO A YEAR AGO LOSSPLAGUED AORTECH HALVED ITS TINY WORK FORCE BY AUTUMN THE COMPANY DECIDED TO EXIT FROM THE BUSINESS ALTOGETHER WE WERE BASICALLY OUT OF CASH SAID ROBERT J KEYPORT WHO JOINED THE COMPANY AS INTERIM CHIEF EXECUTIVE IN JUNE IN AN INTERVIEW YESTERDAY AORTECH AGREED TO SELL ITS REMAINING HEARTVALVE OPERATIONS TO SCOTTISH INVESTORS FOR 23 MILLION BECOMING A FOURPERSON COMPANY WITHOUT OPERATIONS AND ANNOUNCED THAT IT WOULD SEEK OTHER CORPORATE OPPORTUNITIES DURING THAT PERIOD THE COMPANY CONSIDERED AND THEN DROPPED A PLAN TO ACQUIRE A HUMAN ORGANPRESERVATION CONCERN WITH INTERESTS IN TREATING PATIENTS WITH AUTOIMMUNE DIFFICULTIES INCLUDING AIDS SHAREHOLDERS APPROVED THE EARLIER ASSET SELLOFF IN LATE MARCH CLEARING THE WAY FOR THE COMPANY TO ENTER BINDING TALKS ON NEW VENTURES IN MIDMAY CALENDAR ROLLED THE DICE IT AGREED TO MERGE WITH CLOSELY HELD LILLY BELLE'S WHICH OWNS AND OPERATES A CASINO IN BLACK HAWK COLO CALENDAR WAS TO LEASE THE CASINO FROM LILLY BELLE WHICH WOULD CONTINUE TO MANAGE IT THE CASINO OPENED NINE MONTHS AGO IN BLACK HAWK ONE OF THE THREE COLORADO TOWNS WHERE LIMITED GAMBLING IS PERMITTED THE MOVE IN EFFECT MADE CALENDAR WITH ITS FOUR EMPLOYEES A SHELL BY WHICH LILLY BELLE'S COULD BECOME A PUBLICLY TRADED CONCERN IN A MARKET WHERE GAMBLING FEVER HAS TAKEN HOLD CALENDAR'S NEWS SOON QUADRUPLED THE PRICE OF ITS SHARES WHICH HAD BEEN MOLDERING AT LESS THAN A DOLLAR THE STOCK TRADED AS HIGH AS 325 EARLIER THIS MONTH AND CLOSED FRIDAY AT 275 BID BUT YESTERDAY CALENDAR DISCLOSED THAT LILLY BELLE'S HAD INDICATED ITS UNWILLINGNESS TO PROCEED WITH THE PLANNED MERGER BECAUSE OF CONCERNS OVER POTENTIAL PRODUCT LIABILITY LINKED TO CALENDAR'S FORMER HEARTVALVE MANUFACTURING OPERATIONS THERE HAVE NEVER BEEN ANY CLAIMS REGARDING THAT HEART VALVE SAID MR KEYSTONE CALENDAR SAID IT HAS PROPOSED A SOLUTION TO THE PRODUCT LIABILITY QUESTION AND IT'S TRYING TO SALVAGE THE TRANSACTION LILLY BELLE'S HAS MADE NO COMMITMENT BUT HAS INDICATED IT'S WILLING TO TALK SAID MR KEYSTONE CALENDAR SAID IT'S ALSO WEIGHING OTHER OPTIONS INCLUDING OTHER OPPORTUNITIES IN THE GAMING INDUSTRY BUT INVESTORS THREW IN THEIR HANDS AFTER A TRADING HALT YESTERDAY MORNING AND THE STOCK PLUNGED 9306080042 930607 DIGITAL CABLETV BOXES IS FOCUS OF NEW ALLIANCE SAN FRANCISCO MOTOROLA INC SCIENTIFICATLANTA INC AND A JOINT VENTURE OF APPLE COMPUTER INC AND INTERNATIONAL BUSINESS MACHINES CORP TENTATIVELY AGREED TO JOINTLY DEVELOP DIGITAL CABLETV CONVERTER BOXES THAT WOULD DELIVER INTERACTIVE AND MULTIMEDIA SERVICES INTO HOMES SCIENTIFICATLANTA BASED IN ATLANTA WOULD BUILD THE DEVICES MOTOROLA WOULD SUPPLY ITS POWERPC MICROPROCESSOR WHILE KALEIDA LABS INC THE APPLEIBM VENTURE BASED IN MOUNTAIN VIEW CALIF WOULD CONTRIBUTE ITS SCRIPTX MULTIMEDIA SOFTWARE THE COMPANIES EXPECT TO REACH A FINAL AGREEMENT BY MIDJULY THE FIRST DEVICES MAY BE READY FOR DELIVERY BY THE SUMMER OF 1994 MANY COMPANIES ARE FORMING ALLIANCES TO MAKE THE SOFTWARE MICROPROCESSORS AND NETWORKING HARDWARE FOR CABLETV CONVERTERS WHICH WOULD BE USED TO ORDER MOVIES AND INTERACTIVE PROGRAMS VIA TV SETS AND PROVIDE THE OPERATING SOFTWARE NECESSARY TO SIFT THROUGH HUNDREDS OF CHANNELS INTEL CORP AND MICROSOFT CORP HAVE A JOINT VENTURE TO MAKE CONVERTERS WITH GENERAL INSTRUMENTS CORP SCIENTIFICATLANTA IS ALSO PROVIDING CONVERTERS FOR AN EXPERIMENTAL CABLE VENTURE RUN BY TIME WARNER INC 9306080041 930608 DROP IN COMMERCIAL REALESTATE VALUES BRINGS TAX RISE TO MANY HOMEOWNERS BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL THE PLUNGE IN COMMERCIAL REALESTATE VALUES MEANS MANY HOMEOWNERS ARE FACING HIGHER PROPERTY TAXES CUTS IN PUBLIC SERVICES OR BOTH A PROJECTED 32 DROP IN COMMERCIAL REALESTATE VALUES BETWEEN 1989 AND 1994 WILL LEAVE MANY LOCAL GOVERNMENTS WITH A DECLINING PROPERTY TAX BASE A NEW STUDY SAID THE TAX BILL ON AN AVERAGE COMMERCIAL BUILDING WILL DROP 25 DURING THAT PERIOD WHILE THE TAX BILL FOR AN AVERAGE HOME WILL RISE 40 ACCORDING TO THE STUDY BY THE URBAN LAND INSTITUTE A WASHINGTON REAL ESTATE EDUCATION AND RESEARCH ORGANIZATION BY 1994 THE EROSION OF COMMERCIAL REALESTATE VALUES WILL LEAVE HOMEOWNERS SHOULDERING 73 OF THE PROPERTY TAX LOAD UP FROM 65 IN 1989 THE REPORT SAID INCREASING HOMEOWNER TAX BURDENS HAVE TURNED PROPERTY TAXES INTO AN EXTREMELY VOLATILE POLITICAL ISSUE WITH VOTERS IN A GROWING NUMBER OF STATES CAPPING RATE INCREASES PEOPLE USED TO THINK THAT PRICES OF REAL ESTATE COULD ONLY GO IN ONE DIRECTION UP SAYS JOHN BOWMAN AN ECONOMICS PROFESSOR AT VIRGINIA COMMONWEALTH UNIVERSITY AND AN AUTHORITY ON LOCAL TAXATION THE DOWNWARD TRAJECTORY HAS LEFT LOCAL GOVERNMENTS WITH A PAINFUL CHOICE BETWEEN MAKING DO WITH LESS OR TAKING THE POLITICALLY DIFFICULT ACTION OF RAISING THE RATES HE SAYS DURING THE 1980S AN EXPLOSION OF NEW DEVELOPMENT COUPLED WITH STEEP APPRECIATION OF EXISTING BUILDINGS LEFT LOCAL GOVERNMENTS WITH A WINDFALL IT ALLOWED LOCAL GOVERNMENTS TO INCREASE SERVICES WITHOUT NEEDING TO INCREASE THE TAX RATES SAYS JOHN PETERSEN OF GOVERNMENT FINANCE GROUP AN ARLINGTON VA FINANCIAL CONSULTANT TO GOVERNMENTS THAT WROTE THE REPORT THE LEVYING OF PROPERTY TAXES WAS A NOBRAINER BUT FROM 1989 TO 1994 THE ASSESSED VALUE OF ALL COMMERCIAL AND INDUSTRIAL REAL ESTATE IN THE NATION WILL SINK ABOUT 6 TO 114 TRILLION FROM 121 TRILLION THE REPORT PROJECTED TOTAL ASSESSED VALUES DIDN'T DROP NEARLY AS SHARPLY AS THE MARKET VALUES OF MANY INDIVIDUAL PROPERTIES BECAUSE THE TOTAL STOCK GREW AND BECAUSE MANY LOCALITIES HAD RESTRICTED THE SIZE OF ANNUAL INCREASES TO ASSESSMENTS RESULTING IN BUILDINGS BEING CARRIED ON THE TAX ROLLS AT ARTIFICIALLY LOW LEVELS DESPITE THE WIDESPREAD FEAR THAT HOME VALUES WOULD ALSO COLLAPSE IN MOST AREAS THEY HELD STEADY OR EVEN ROSE THUS WHEN CONTINUING NEW CONSTRUCTION IS TAKEN INTO ACCOUNT THE REPORT SAID THE ASSESSED VALUE OF THE NATION'S HOMES WILL RISE TO 51 TRILLION IN 1994 UP 46 FROM 35 TRILLION IN 1989 THIS SIMULTANEOUS GROWTH OF THE RESIDENTIAL PROPERTY TAX BASE AND DECLINE OF THE COMMERCIAL BASE EVEN IF TAX RATES AREN'T CHANGED LEAVES HOMEOWNERS CARRYING MORE OF THE LOAD BUT IN COMMUNITIES HIT HARD BY THE COMMERCIAL REALESTATE SLUMP HOMEOWNERS ARE THREATENED WITH TAX INCREASES AS WELL AND WHEN THE POLITICAL CLIMATE ISN'T CONDUCIVE TO INCREASES OFFICIALS HAVE HAD TO SEARCH FOR OTHER SOURCES OF REVENUE SUCH AS USER FEES OR CUT SERVICES LOUDOUN COUNTY VA FOR EXAMPLE WAS ONE OF THE FASTESTGROWING SUBURBS IN THE DISTRICT OF COLUMBIA IN THE 1980S WITH THE BOOM OF NEW CONSTRUCTION ASSESSED VALUES CLIMBED TO A HIGH OF 127 BILLION IN 1990 FROM MORE THAN 2 BILLION IN 1981 SINCE THEN HOWEVER THEY HAVE DECLINED 15 TO 108 BILLION MOSTLY BECAUSE OF THE EROSION OF COMMERCIAL VALUES THE CHALLENGE IS THAT WE HAVE DECREASING REVENUES WHILE OUR DEMAND FOR SERVICES IS STILL GROWING BECAUSE THE POPULATION CONTINUES TO GROW SAYS COUNTY MANAGER KIRBY BOWERS THE COUNTY RESPONDED BY INCREASING THE TAX RATE TO 1 PER 100 OF ASSESSED VALUE FOR THE CURRENT FISCAL YEAR FROM 85 CENTS IN 1991 IT CLOSED THE REST OF THE BUDGET GAP BY FREEZING SALARIES ELIMINATING THE GYPSY MOTH SPRAYING PROGRAM REDUCING LIBRARY HOURS AND DELAYING THE OPENING OF NEW LIBRARIES AND INCREASING CHARGES FOR 911 EMERGENCY CALLS DALLAS TOO EXPERIENCED RUNAWAY GROWTH IN THE 1980S WITH THE PROPERTY TAX BASE SOARING TO 52 BILLION IN 1989 FROM 24 BILLION IN 1981 THEN IT DROPPED 16 TO 43 BILLION IN 1992 WITH THE COMMERCIAL REALESTATE COMPONENT PLUNGING TO 173 BILLION THIS YEAR FROM 241 BILLION IN 1987 AS A RESULT DALLAS HAS RAISED ITS TAX RATES THREE TIMES IN THE PAST FIVE YEARS CITY MANAGER JAN HART SAYS THE DECLINE OF HOME VALUES HAS LEFT THE AVERAGE HOMEOWNER'S TAX BILL ABOUT THE SAME WHICH THE CITY CONSIDERED A PRIORITY BUT THAT HAS NECESSITATED A SPATE OF COST REDUCTIONS INCLUDING THE LAYOFF OF 22 OF THE CITY'S OFFICE WORKERS AND THE DECISION TO BILL HOMEOWNERS FOR THE FULL COST OF TRASH PICKUP IN RECENT YEARS VOTERS IN COLORADO OREGON AND NEW JERSEY FOR EXAMPLE HAVE PASSED LEGISLATION CAPPING PROPERTY TAX INCREASES BECAUSE OF THE SPREADING TAXPAYER REVOLTS MANY MUNICIPALITIES HAVE NO CHOICE BUT TO FOCUS ON SERVICE CUTS JUST HOW MUCH LONGER COMMUNITIES WILL BE CAUGHT BY THIS PROPERTY TAX SQUEEZE REMAINS UNCLEAR SAYS MR PETERSEN PEOPLE THINK THIS PROBLEM IS GOING TO LAST FOR AT LEAST A DECADE 9306080040 930608 INTERNATIONAL BRIEF BAA PLC BRITISH AIRPORT CONCERN POSTS 49 RISE IN PROFIT FOR YEAR THE BRITISH AIRPORT MANAGEMENT GROUP BAA PLC REPORTED A 49 JUMP IN PRETAX PROFIT FOR THE FISCAL YEAR ENDED MARCH 31 BAA CHAIRMAN BRIAN SMITH DESCRIBED THE RESULT AS A ROBUST FINANCIAL PERFORMANCE DURING A DIFFICULT TIME FOR THE AIR TRANSPORT INDUSTRY AND THE ECONOMY AS A WHOLE PRETAX PROFIT GREW TO 85 MILLION 4299 MILLION FROM 91 MILLION A YEAR EARLIER THE RESULT WAS SLIGHTLY ABOVE ANALYSTS' FORECASTS THE COMPANY'S DIVIDEND WAS RAISED 10 TO 16 PENCE 24 CENTS A SHARE FROM 145 PENCE A SHARE IN LINE WITH PREVIOUS ESTIMATES ON THE LONDON STOCK EXCHANGE YESTERDAY BAA SHARES ROSE FIVE PENCE TO 770 PENCE 9306080039 930608 TECHNOLOGY NASA UNVEILS PROPOSALS FOR SMALLER SPACE STATION WASHINGTON THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION UNVEILED THREE DESIGNS FOR A SCALEDDOWN SPACE STATION THAT WOULD CUT BILLIONS OF DOLLARS FROM THE PRICE BUT NONE OF THE PROPOSED SPACE CRAFT COULD BE FULLY BUILT AS CHEAPLY AS THE WHITE HOUSE HAD HOPED THE NEW PROPOSALS WOULD REQUIRE 163 BILLION TO 215 BILLION ABOVE AND BEYOND WHAT THE US HAS ALREADY SPENT ON THE PROJECT WHITE HOUSE OFFICIALS HAVE INDICATED THAT THEY HOPED TO ADD NO MORE THAN 5 BILLION TO 7 BILLION TO THE COST SINCE 1984 THE US HAS ALLOTED 112 BILLION FOR THE DESIGN AND DEVELOPMENT OF AN ORBITING LABORATORY IN WHICH ASTRONAUTS WOULD LIVE RATHER THAN SIMPLY VISIT AFTER THE TURN OF THE CENTURY CONCERNED ABOUT THE BUDGET DEFICIT PRESIDENT CLINTON EARLIER THIS YEAR ORDERED PLANS FOR THE CURRENT DESIGN SPACE STATION FREEDOM SCALED DOWN THE NEW NUMBERS AND DESIGN DETAILS WILL BE PRESENTED TO THE WHITE HOUSE LATER THIS WEEK IT ISN'T CLEAR WHEN ITS DECISION WILL BE ISSUED BUT THE CHOICE WILL AFFECT MAJOR COMPANIES WORKING ON FREEDOM WHOSE PRICE TAG WAS REVISED UPWARD TO ABOUT 36 BILLION ALREADY NASA OFFICIALS ARE RECOMMENDING SWITCHING TO A SINGLE PRIME CONTRACTOR TO MANAGE THE MAMMOTH PROJECT COMPANIES THAT WOULD BE MOST AFFECTED INCLUDE MCDONNELL DOUGLAS CORP LOCKHEED CORP BOEING CO ROCKWELL INTERNATIONAL CORP AND GRUMMAN CORP 9306080038 930608 INTERNATIONAL BRIEF OFFICE COMMERCIAL PHARMACEUTIQUE GEHE AG MAKES COUNTERBID FOR PHARMACEUTICAL FIRM GEHE AG OF GERMANY UPPED THE ANTE IN A TAKEOVER BATTLE FOR FRANCE'S LARGEST PHARMACEUTICAL DISTRIBUTOR OFFICE COMMERCIAL PHARMACEUTIQUE SA WITH A MUCH HIGHER COUNTERBID GEHE SAID IT WOULD PAY 985 FRANCS 17980 A SHARE EXDIVIDEND FOR OCP 168 MORE THAN AN 865FRANCASHARE WITH DIVIDEND JOINT BID MADE PREVIOUSLY BY COOPERATION PHARMACEUTIQUE FRANCAISE SA AND BERGEN BRUNSWIG CORP OF ORANGE CALIF THAT JOINT BID VALUED OCP AT 443 MILLION 809 MILLION A MERGER OF GEHE A GERMAN PHARMACEUTICAL MAKER THAT IS A UNIT OF FRANZ HANIEL & CIE WITH OCP WOULD CREATE ONE OF THE LARGEST DRUG DISTRIBUTORS IN THE WORLD WITH REVENUE OF ABOUT 50 BILLION FRENCH FRANCS THE PROSPECT HAS SHAKEN UP THE PHARMACEUTICAL WORLD IN FRANCE DRUG INDUSTRY OBSERVERS HAVE SAID THEY FEAR THE COMPANY AS A TRIPLE THREAT FOR ALL PLAYERS IN THE INDUSTRY AN IMMENSE DISTRIBUTOR A GENERIC DRUG MAKER AND EVEN A POTENTIAL FUTURE OWNER OF CHAINS OF PHARMACIES THE ORIGINAL GEHE OFFER HAD BEEN THE SUBJECT OF SOME CONTROVERSY AND LITIGATION IN FRANCE OCP INITIALLY ACCEPTED THE BID AND IT HAD CLEARED SEVERAL REGULATORY HURDLES BUT OCP'S LARGEST HOLDER PIERRE BOURELY WAS OPPOSED ALONG WITH SOME FRENCH GOVERNMENT FACTIONS THE BID THEN WAS THROWN OUT BY A PARIS APPEALS COURT 9306080037 930608 FINANCING BUSINESS UNISYS CORP UNISYS CORP SAID IT WILL REDEEM ON JULY 7 ALL OF ITS 100 MILLION OF OUTSTANDING 10 3/4 NOTES DUE NOV 1 1995 AT THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST UNISYS OF BLUE BELL PA SUPPLIES COMMERCIAL INFORMATION SYSTEMS DEFENSE SYSTEMS AND RELATED SERVICES 9306080036 930608 INTERNATIONAL SHENZHEN CHINA BICYCLES CO PLANS FOR NEW RIGHTS ISSUE ARE ENDED BY CHINESE FIRM SHENZHEN CHINA BICYCLES CO SCRAPPED PLANS FOR A NEW RIGHTS ISSUE IN WHICH IT HOPED TO RAISE 400 MILLION YUAN 699 MILLION SAYING THAT IT FIRST MUST SELL SHARES THAT WERE FORMERLY HELD BY SCHWINN BICYCLE CO THE SHENZHEN COMPANY SAID LAST WEEK'S SHARP SLIDE IN THE YUAN ALSO PROMPTED IT TO RECONSIDER THE RIGHTS SALE WHICH ORIGINALLY WAS PLANNED TO RAISE MONEY FOR EXPANDING ITS BICYCLE SALES NETWORK AND ITS MANUFACTURING OPERATIONS THE COMPANY ALSO OUTLINED PLANS FOR DEVELOPMENT OF A HOTEL SHOPPING CENTERS AND OTHER PROPERTY AN OFFICIAL SAID THE COMPANY'S PLAN TO PLACE SHARES FORMERLY HELD BY SCHWINN HAS BEEN DELAYED THE US BICYCLE MAKER WAS FORCED TO RELINQUISH ITS 23 OWNERSHIP IN CHINA BICYCLES AFTER FILING FOR US BANKRUPTCY COURT PROTECTION LAST YEAR SCHWINN SWAPPED THE OWNERSHIP STAKE FOR FORGIVENESS OF DEBT OWED TO CHINA BICYCLES DESPITE THE EXPECTATION THAT THE SCHWINN SHARES WILL BE PLACED IN A MATTER OF WEEKS CHINA BICYCLE SAYS IT HAS PUT OFF THE RIGHTS ISSUE UNTIL AT LEAST NEXT YEAR 9306080035 930608 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT CONSOLIDATED EDISON CO OF NEW YORK 380 MILLION OF DEBENTURES DUE JUNE 15 2023 PRICED AS 75S AT 99045 TO YIELD 7581 ACCORDING TO MCM CORPORATEWATCH NONCALLABLE FOR 10 YEARS THE ISSUE IS PRICED AT A SPREAD OF 069 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND RATED DOUBLEA2 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH LEHMAN BROTHERS FIRST FIDELITY BANCORP 150 MILLION AGGREGATE PRINCIPAL AMOUNT OF 68 SUBORDINATED NOTES DUE JUNE 15 2003 PRICED AT 99534 INTEREST WILL BE PAID ON DEC 15 AND JUNE 15 EACH YEAR TO HOLDERS OF RECORD OF DEC 1 AND JUNE 1 THE OFFERING IS BEING UNDERWRITTEN BY GOLDMAN SACHS & CO FIRST BOSTON CORP AND LEHMAN BROTHERS THE COMPANY SAID PROCEEDS WILL BE USED FOR GENERAL CORPORATE PURPOSES SOUTHERN CALIFORNIA EDISON CO 150 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS DUE JUNE 15 1998 WON BY DEALERS LED BY MERRILL LYNCH & CO THE NONCALLABLE ISSUE WILL BE REOFFERED AS 545S AT 99049 TO YIELD 5671 THE ISSUE WAS PRICED AT A YIELD OF 034 PERCENTAGE POINT ABOVE THE TREASURY FIVEYEAR NOTE MERRILL'S BID RESULTED IN A 5718 NET INTEREST COST TO THE COMPANY THE ISSUE IS RATED DOUBLEA3 BY MOODY'S AND SINGLEAPLUS BY S&P SOUTHERN CALIFORNIA EDISON IS A UNIT OF SCECORP SOUTHERN CALIFORNIA EDISON CO 125 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS DUE JUNE 15 2003 WON BY DEALERS LED BY SALOMON BROTHERS INC THE NONCALLABLE ISSUE WILL BE REOFFERED AS 625S AT 98327 TO YIELD 648 THE ISSUE WAS PRICED AT A YIELD OF 04 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE SALOMON'S BID RESULTED IN A 6525 NET INTEREST COST TO THE COMPANY THE ISSUE IS RATED DOUBLEA3 BY MOODY'S AND SINGLEAPLUS BY S&P AMERICAN SAFETY RAZOR CO INITIAL OFFERING OF FIVE MILLION COMMON SHARES PRICED AT 12 APIECE THROUGH UNDERWRITERS LED BY SMITH BARNEY HARRIS UPHAM & CO MARINER HEALTH GROUP INC INITIAL OFFERING OF 35 MILLION COMMON SHARES PRICED AT 11 APIECE THROUGH UNDERWRITERS LED BY ALEX BROWN & SONS MORGAN STANLEY EMERGING MARKETS FUND INC RIGHTS OFFER OF UP TO 37 MILLION COMMON SHARES PAR VALUE ONE CENT APIECE TO SHAREHOLDERS OF RECORD AS OF YESTERDAY THROUGH MORGAN STANLEY & CO AS DEALER MANAGER THE FUND WILL ISSUE ONE TRANSFERABLE RIGHT FOR EACH SHARE HELD ON THE RECORD DATE FOR EVERY THREE RIGHTS DELIVERED ON OR PRIOR TO THE EXPIRATION DATE JUNE 23 PURCHASE FROM THE FUND OF ONE COMMON SHARE PRICED AT 1550 WILL BE PERMITTED FORSYTH MONT 902 MILLION PRINCIPAL AMOUNT OF 6125 COUPON RATE POLLUTIONCONTROL REVENUE REFUNDING BONDS DUE 2023 OFFERED ON BEHALF OF MONTANA POWER CO THE BONDS SECURED BY AN IDENTICAL AMOUNT OF MONTANA FIRST MORTGAGE BONDS ARE PRICED TO YIELD 6217 THE OFFERING WILL CLOSE JUNE 30 MONTANA SAID PROCEEDS WILL BE USED TO REDEEM OUTSTANDING POLLUTIONCONTROL REVENUE BONDS IT SAID THE FOLLOWING BONDS WILL BE CALLED JULY 1 575 SERIES DUE JUNE 1 2003 63 SERIES DUE JUNE 1 2007 VARIABLE RATE SERIES DUE JAN 1 2014 AND ADJUSTABLE RATE SERIES DUE AUG 1 2014 TOTAL AMOUNTS FOR THE BOND ISSUES WEREN'T PROVIDED FRESNO COUNTY CALIF 130 MILLION 1993 TAX AND REVENUE ANTICIPATION NOTES APPARENTLY WON BY MORGAN STANLEY & CO INC WITH A BID SETTING THE NET INTEREST COST AT 2886 THE NOTES WHICH ARE DUE JULY 29 1994 HAVE A 325 COUPON AND ARE PRICED TO YIELD 28 AT MATURITY THEY HAVE BEEN RATED MIG1 BY MOODY'S BANK UNITED OF TEXAS 4483 MILLION IN MORTGAGEBACKED SECURITIES OFFERED IN TWO SEPARATE TRANSACTIONS BY ITS WHOLESALE BANKING DIVISION THE COMPANY SAID 3191 MILLION OF SECURITIES WILL BE ISSUED THROUGH FIRST BOSTON CORP THE SECURITIES ARE BACKED BY SEASONED 30YEAR FIXEDRATE MORTGAGES THAT BANK UNITED PURCHASED FROM VARIOUS INSTITUTIONS CONTROLLED BY THE RESOLUTION TRUST CORP IN THE SECOND TRANSACTION THE COMPANY IS OFFERING 1292 MILLION OF FEDERAL NATIONAL MORTGAGE ASSOCIATION MORTGAGEBACKED SECURITIES IT RECEIVED IN EXCHANGE FOR RESIDENTIAL MORTGAGE LOANS THAT HAD BEEN ORIGINATED OR PURCHASED BY BANK UNITED FEDERAL NATIONAL MORTGAGE ASSOCIATION 525 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1993110 IS BACKED BY 525 MILLION PRINCIPAL ONLY AND 455 MILLION INTEREST ONLY OF STRIPS TRUST 221 WHICH IS BACKED IN TURN BY THE AGENCY'S 30YEAR 75 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 805 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 295 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY FIRST BOSTON CORP THE OFFERING SERIES 1993114 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 72 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 148 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES 1993G25 IS BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION GINNIE MAE 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 298 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 350 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1993115 IS BACKED BY THE AGENCY'S 30YEAR 75 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 805 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 295 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 1095 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 119113 IS BACKED BY 1095 MILLION PRINCIPAL ONLY AND 1022 MILLION INTEREST ONLY OF STRIPS TRUST 231 WHICH IS BACKED IN TURN BY THE AGENCY'S 30YEAR 75 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 805 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 295 YEARS REPUBLIC OF ITALY SOVEREIGN 15 BILLION OF FLOATINGRATE EURONOTES DUE JUNE 29 1998 AT ISSUE AND FIXED REOFFER PRICE 9975 VIA MORGAN STANLEY INTERNATIONAL INTEREST PAYABLE QUARTERLY AT THREEMONTH LONDON INTERBANK OFFERED RATE FOR DOLLARS PLUS 25 BASIS POINTS FEES 02 POINT SONY EUROFINANCE BV JAPANESE PARENT 10 BILLION YEN OF 445 EUROBONDS DUE OCT 15 1996 AT ISSUE PRICE 101275 VIA SAKURA FINANCE INTERNATIONAL LTD REOFFERED AT 10015 TO YIELD 439 BACKED BY KEEPWELL AGREEMENT WITH SONY CORP FEES 1375 POINTS SWEDISH EXPORT CREDIT CORP SWEDISH AGENCY 500 MILLION SWEDISH KRONOR OF 7875 EUROBONDS DUE JULY 2 1997 AT ISSUE PRICE 10122 VIA MORGAN STANLEY INTERNATIONAL REOFFERED AT 9982 TO YIELD 793 ANNUAL FEES 1625 POINTS TOA STEEL CO JAPAN 30 BILLION YEN OF 15 CONVERTIBLE EUROBONDS DUE SEPT 30 2000 AT ISSUE PRICE PAR VIA NOMURA INTERNATIONAL PLC BONDS CONVERTIBLE INTO TOA STEEL SHARES FROM JULY 4 1993 TO SEPT 22 2000 AT EXPECTED 25 PREMIUM ABOVE CLOSING SHARE PRICE ON JUNE 10 WHEN FINAL TERMS ARE SET BONDS CALLABLE FROM APRIL 1 1995 AT 10275 DECLINING 025 POINT EACH SIX MONTHS THEREAFTER TO PAR FEES 25 PAYABLE SEMIANNUALLY 9306080034 930608 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY KEVIN G SALWEN ROLLING STRIKES ARE BACK BUT MANAGEMENT UNVEILS ITS COUNTERSTRATEGY LONG A FAVORITE TACTIC OF THE UNITED MINE WORKERS THE STRIKES TARGET ONE SHOP AT A TIME MOVING THE ACTION KEEPS MANAGEMENT FROM EASILY HIRING REPLACEMENTS SAYS UNION PUBLICRELATIONS EXECUTIVE RAY ABERNATHY IT DRIVES EMPLOYERS CRAZY ROLLING STRIKES RECENTLY WERE WAGED BY STATE EMPLOYEES IN OREGON CLERICAL WORKERS IN LOS ANGELES JANITORS IN WASHINGTON DC AND UNIVERSITY EMPLOYEES IN CINCINNATI ROLLING STRIKES ARE TOUGH TO COMBAT BECAUSE THEY ARE MORE LIKE GUERRILLA WARFARE THAN A FULLFLEDGED BATTLE SAYS MANAGEMENT LAWYER MARK DE BERNARDO THEY FORCE ROVING TEAMS OF MANAGERS OR REPLACEMENT WORKERS TO GO FROM SITE TO SITE IN A RECENT NEW JERSEY SUPERMARKET STRIKE MANAGEMENT LOCKED OUT UNION MEMBERS AT ONE UNPICKETED STORE FOR EACH STORE PICKETED SOME LABOR FOLKS REMAIN WARY ABOUT THE TACTIC SAYS RAY ROGERS HEAD OF CORPORATE CAMPAIGN A COMPANY THAT RUNS UNION BATTLES AGAINST MANAGEMENT THERE ARE FEW SITUATIONS WHERE WALKING OUT THE DOOR IS GOOD ENOUGH NURSES LOOK TO HEALTHCARE REFORMS TO FLEX MUSCLE BUT DOCTORS FIGHT BACK NURSES PRESS THE WHITE HOUSE FOR A BIGGER ROLE IN PRIMARY CARE INCLUDING DIAGNOSING PATIENTS AND DETERMINING TREATMENT A MOVE THEY SAY WOULD SAVE MONEY DUE TO THE SHORTAGE OF PRIMARYCARE DOCTORS A PERSON WHO WOULD SEE A NURSE AS A FIRSTLINE PROVIDER WOULD GET BETTER CARE ARGUES VIRGINIA TROTTER BETTS PRESIDENT OF THE AMERICAN NURSES ASSOCIATION BUT THE AMERICAN MEDICAL ASSOCIATION WANTS TO KEEP NURSES IN SUPPORTING ROLES THIS IS A QUALITY OF CARE ISSUE SAYS AMA CHAIRMAN RAYMOND SCALETTAR WE'RE NOT LOOKING DOWN ON NURSES AT ALL BUT THIS PUSH IS WRONG AND COULD BE HARMFUL TO THE PUBLIC INSTEAD THE DOCTORS' GROUP WANTS TO ASSURE THAT ALL AMERICANS HAVE A PRIMARYCARE PHYSICIAN DOCTORSTOBE FLOCK TO MED SCHOOLS AND FIND PHYSICIANS ARE IN SHORT SUPPLY MEDICALSCHOOL APPLICATIONS ARE AT THEIR HIGHEST SINCE 1974 SAYS THE ASSOCIATION OF AMERICAN MEDICAL SCHOOLS TUFTS UNIVERSITY SEES A 19 JUMP IN APPLICATIONS WHILE THE UNIVERSITY OF CALIFORNIA AT SAN FRANCISCO HAS AN 8 RISE IMPENDING HEALTHCARE REFORMS HAVEN'T KEPT TOP STUDENTS FROM HEADING FOR MED SCHOOL SAYS STANLEY BERGEN JR OF THE UNIVERSITY OF MEDICINE AND DENTISTRY OF NEW JERSEY A STUDY BY CONSULTING FIRM TOWERS PERRIN SHOWS THAT PRIMARYCARE PHYSICIANS WILL BE IN SHORT SUPPLY WITH HMOS ALONE EXPECTED TO NEED 100 OF THE PRIMARYCARE RESIDENCY CLASS BY 1998 A SEPARATE MERRITT HAWKINS & ASSOCIATES POLL OF 219 FINALYEAR MEDICAL RESIDENTS SHOWS THAT TWOTHIRDS GOT 50 OR MORE JOB OFFERS DOCTORS ARE NOT LIKELY TO BE OUT OF WORK SAYS TUFTS'S BARBARA CHASE THOSE OUT OF SCHOOL FRET OVER REFORMS OUR ALUMNI WHO ARE 10 TO 15 YEARS OUT ARE VERY AFRAID SAYS CYNTHIA HELDBERG AT THE MEDICAL COLLEGE OF VIRGINIA IT'S WORSE OVER THERE TWOTHIRDS OF THE JOBLESS IN ITALY AND 60 OF THOSE IN BELGIUM AND IRELAND HAVE BEEN OUT OF WORK FOR A YEAR OR MORE THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT SAYS BY CONTRAST ONLY 6 OF THE UNEMPLOYED IN THE US HAVE BEEN OUT OF WORK FOR A YEAR ALTHOUGH JAPAN'S JOBLESS RATE AVERAGED A SKIMPY 22 LAST YEAR NEARLY A FIFTH HAD BEEN OUT OF WORK FOR A YEAR PAY BALANCE REMAINS A JOKE 30 YEARS AFTER THE EQUAL PAY ACT THE NATIONAL COMMITTEE ON PAY EQUITY SAYS WOMEN WORKING FULLTIME EARN 699 OF MEN'S SALARIES THE GROUP SAYS UP FROM 596 IN 1963 WHEN THE LAW WAS SIGNED AT THIS RATE IT WILL TAKE 90 YEARS UNTIL 2082 BEFORE WE HAVE EQUAL PAY THE GROUP ARGUES THE FLEXES ARE COMING SMALLER COMPANIES INCREASINGLY ARE WEIGHING FLEXIBLEBENEFIT PLANS A WYATT CO SURVEY SHOWS WHILE ABOUT A FIFTH OF COMPANIES WITH FEWER THAN 1000 EMPLOYEES HAVE SUCH PLANS AN ADDITIONAL 17 SURVEYED BY THE CONSULTING COMPANY PLAN TO ADOPT THEM SMALLTOWN COMPANIES USE DIFFERENT MEANS TO LURE EXECUTIVES AT CORNING INC IN CORNING NY PROSPECTIVE OFFICIALS OFTEN GET TOURS OF THE LOCAL WINERIES A SPOUSETRANSITION PERSON HELPS THE OTHER HALF FIND WORK AT QUAKER STATE IN OIL CITY PA THE TRICK IS GETTING EXECUTIVES TO VISIT PEOPLE THINK OH MY GOD OIL CITY' SAYS SPOKESMAN BENTON FAULKNER BUT THE COMPANY SELLS THE PRISTINE ENVIRONMENT BEING FIVE MINUTES FROM THE OFFICE TO THE COUNTRY CLUB AND THE CHANCE TO HAVE AN IMPACT ON THE COMMUNITY PAUL R RAY & CO A DALLAS EXECUTIVE SEARCH FIRM RECOMMENDS FINDING EXECUTIVES WITH RURAL ROOTS AND EMPHASIZING THE BENEFITS OF SMALLTOWN USA JOHN HALE HEAD OF PERSONNEL AT LEGGETT & PLATT CARTHAGE MO SAYS IT OFTEN TAKES EIGHT OR NINE MONTHS TO FIND EXECUTIVES FOR HIS BEDDING COMPANY BICYCLE MAKER HUFFY TRIES TO MAKE OUTSIDERS SEE THAT DAYTON OHIO HAS THE SAME THINGS AS METROPOLITAN AREAS JUST ON A SMALLER SCALE SAYS PAM WHIPPS THE CHECKOFF ADVICE FOR TRAVELING EXECUTIVES FROM FLIGHT ATTENDANT PATTY SWISSHELMCLIFFORD TO MAKE YOUR CHILD FEEL LESS LONELY LEAVE AN AUDIO TAPE OF YOURSELF READING HIS OR HER FAVORITE BEDTIME STORY SPOTTED BY RECRUITER ROBERT HALF ON A RESUME AWARDS TWICE VOTED UGLIEST MAN IN TOWN 9306080033 930608 WHAT'S NEWS BUSINESS AND FINANCE CHRYSLER'S CREDIT RATING IS BEING REVIEWED BY S&P FOR A POSSIBLE UPGRADE A RISE IN THE RATING WHICH IS NOW ONE NOTCH BELOW INVESTMENT GRADE COULD AUGUR A DIVIDEND BOOST MOODY'S WHICH RATES CHRYSLER TWO NOTCHES BELOW INVESTMENT GRADE SAID IT HAS NO IMMEDIATE PLANS FOR A REVIEW AN INVESTMENTGRADE CREDIT RATING WOULD CUT CHRYSLER'S BORROWING COSTS BY AT LEAST 33 MILLION A YEAR SEN MOYNIHAN'S PROPOSAL TO CUT THE MEDICARE PROGRAM BY AN ADDITIONAL 35 BILLION OVER FIVE YEARS COULD FORCE PRESIDENT CLINTON TO SEEK THAT MUCH IN NEW TAXES TO PAY FOR THE ADMINISTRATION'S HEALTHCARE PLAN DART GROUP'S CHAIRMAN HERBERT HAFT OUSTED FOUR DIRECTORS INCLUDING HIS WIFE AND SON FROM THE RETAIL AND REAL ESTATE FIRM IN AN APPARENT ATTEMPT TO SHOW HE'S STILL IN CONTROL TWO TOP SUNBEAMOSTER EXECUTIVES HAVE TAKEN LEAVES OF ABSENCE AMID DISCLOSURES THAT UNIDENTIFIED SUNBEAM EMPLOYEES DISCARDED DOCUMENTS THE PAPERS ARE SOUGHT AS LEGAL EVIDENCE IN A FIGHT FOR MANAGEMENT CONTROL THE DROP IN COMMERCIAL REALESTATE VALUES IS FORCING HOMEOWNERS TO PAY HIGHER PROPERTY TAXES A STUDY SHOWS FROM 1989 TO 1994 TAXES ON AN AVERAGE COMMERCIAL BUILDING WILL DROP 25 AND RISE 40 FOR AN AVERAGE HOME OUSTED TAMBRANDS CHAIRMAN EMMETT DENIED THAT HIS DISMISSAL WAS RELATED TO ANY PERSONAL IMPROPRIETIES INVESTORS IN PRUDENTIAL SECURITIES INC'S 35 SOURED ENERGY PARTNERSHIPS AGREED TO A SWEETENED OFFER FROM PARKER & PARSLEY IN WHICH THEY WILL EFFECTIVELY RECEIVE 79 CENTS ON THE DOLLAR NATIONAL BANKS ARE ALLOWED TO SELL INSURANCE FROM BRANCHES IN SMALL TOWNS THE SUPREME COURT SAID IN A RULING AFFECTING THOUSANDS OF BANKS MERRILL LYNCH NAMED CHIEF EXECUTIVE DANIEL TULLY TO THE ADDITIONAL POST OF CHAIRMAN IT ALSO SAID ITS TOTAL CLIENT ASSETS TOPPED 500 BILLION LAST MONTH ADVANCED MICRO DEVICES' STOCK PLUNGED 425 OR 15 TO 2375 FOLLOWING A LEGAL RULING FAVORING RIVAL INTEL IN THEIR LONGRUNNING COPYRIGHT FEUD SEVEN MULTINATIONAL OIL COMPANIES ARE EXPECTED TO SIGN A PRELIMINARY PACT IN KAZAKHSTAN THAT COULD LEAD TO THE DEVELOPMENT OF A POTENTIALLY HUGE OIL FIELD IN THE CASPIAN SEA CHASE MANHATTAN WILL NO LONGER PAY TO PROVIDE CUSTOMERS WITH COLLISION COVERAGE ON CAR RENTALS PAID FOR WITH ITS VISA OR MASTERCARD EMPLOYERS CAN REDUCE TREATMENT COSTS FOR JOBRELATED INJURIES BY NEARLY 40 IF THEY SEND WORKERS TO HMOS RATHER THAN LET WORKERS CHOOSE THEIR OWN DOCTORS A NEW STUDY SHOWS STOCKS DROPPED AS A SELLOFF IN FINANCIAL STOCKS LED BROAD MARKET INDEXES MODERATELY LOWER THE DOW JONES INDUSTRIALS DROPPED 1301 POINTS TO 353213 THE PRICE OF THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED NEARLY 1/2 POINT ITS YIELD FELL TO 687 BONDS LEHMAN BROTHERS TREASURY INDEX 512912 UP 1901 COMMODITIES OIL 1954 A BARREL OFF 23 CENTS DOW JONES FUTURES INDEX 12111 OFF 019 SPOT INDEX 12057 UP 035 DOLLAR 10720 YEN OFF 055 16205 MARKS OFF 00060 9306080032 930608 WHO'S NEWS RESPIRONICS INC RESPIRONICS INC MURRYSVILLE PA RICHARD G CONFER 44 YEARS OLD WAS NAMED VICE PRESIDENT QUALITY ASSURANCE AND REGULATORY AFFAIRS A NEW POST AT THIS MAKER OF RESPIRATORY MEDICAL PRODUCTS 9306080031 930608 LETTERS TO THE EDITOR POLICE PROCEDURE IS PURE TORTURE CONCERNING YOUR APRIL 28 ARTICLE EGYPT IN SHIFT TO RESTRAIN FORCE AGAINST SUSPECTED ISLAMIC RADICALS TORTURE IS NOT A PROBLEM INSIDE EGYPTIAN PRISONS BUT SYSTEMATIC ABUSE IS PRACTICED IN THE OFFICES OF THE GENERAL DIRECTORATE OF STATE SECURITY INVESTIGATION SSI THE POWERFUL DOMESTIC INTELLIGENCE AGENCY ATTACHED TO THE MINISTRY OF INTERIOR ISLAMIC SUSPECTS AND OTHERS ARE ABUSED WHILE HELD IN SSI CUSTODY INCOMMUNICADO AND BLINDFOLDED PRIOR TO THEIR TRANSFER TO A PRISON IN SOME CASES DETAINEES HAVE BEEN SECRETLY REMOVED FROM PRISONS TO BE TORTURED IN SSI OFFICES RECENTLY AN INCREASING NUMBER OF VICTIMS HAVE BEEN DETAINED AND TORTURED BY SSI AT INACCESSIBLE CAMPS OF THE PARAMILITARY CENTRAL SECURITY FORCES THE METHODICAL NATURE OF THE TECHNIQUES LONG USED AROUND THE COUNTRY BY SSI INCLUDING ELECTRIC SHOCK SUGGESTS COMMON TRAINING IT ALSO BELIES THE INTERIOR MINISTRY'S LONGSTANDING DISMISSAL OF DOCUMENTATION OF TORTURE BY EGYPTIAN AND INTERNATIONAL HUMAN RIGHTS ORGANIZATIONS WITH THE EXPLANATION THAT NO POLICE FORCE IS PERFECT INDEED THE CUMULATIVE WEIGHT AND DETAIL OF HUNDREDS OF TORTURE CASES OVER A PERIOD OF YEARS IS SUGGESTIVE NOT OF A PRACTICE BY INDIVIDUAL ROGUE OFFICERS BUT OF A GOVERNMENTSANCTIONED POLICY DESIGNED AT THE HIGHEST LEVELS OF THE MINISTRY OF INTERIOR AND SUPERVISED BY OFFICERS OF ONE OF THE MINISTRY'S MOST ELITE UNITS 9306080030 930608 FUTURE REVISITED RETURN TO SOUTH AFRICA SHOWS RACIAL PROGRESS BUT TENSIONS REMAIN BLACKS AND WHITES CONFRONT THE POSTAPARTHEID ERA WITH FEAR RAGE HOPE FINDING HISTORY IN A SHOE BOX BY ROGER THUROW STAFF REPORTER OF THE WALL STREET JOURNAL PORT ELIZABETH SOUTH AFRICA IN THE 1980S MIKE XEGO HAD HIS NEIGHBORHOOD OF TIN AND CARDBOARD SHACKS WIRED FOR REVOLUTION TODAY HE IS HAVING IT WIRED FOR ELECTRICITY WE WON'T PUT UP WITH ANY PEOPLE WHO STEAL THIS STUFF HE WARNS HIS NEIGHBORS AS WORKERS BEGIN LAYING CABLES A FEW YEARS AGO THE 34YEAROLD MR XEGO AND HIS FRIENDS WOULD HAVE PICKED THE SITE CLEAN STRIKING A BLOW AGAINST APARTHEID BUT THE FEVER OF REVOLUTION IS GIVING WAY TO THE SWEAT OF LOCAL GOVERNMENT WHERE HE ONCE USED TO BURROW THROUGH AN UNDERGROUND NETWORK PREACHING RESISTANCE AGAINST THE WHITE REGIME MR XEGO NOW CRUISES AROUND IN A SPORTY VOLKSWAGEN PLEADING FOR COOPERATION WITH A GOVERNMENT THAT MAY SOON BE LED BY HIS AFRICAN NATIONAL CONGRESS GO TO SCHOOL HE URGES CHILDREN HE ONCE TOLD TO BOYCOTT CLASSES PAY YOUR RENTS HE TELLS ADULTS HE ONCE RALLIED TO CONSUMER PROTESTS DON'T THROW STONES AT THE COPS HE BEGS COMRADES HE ONCE LED INTO CONFRONTATION AS A REVOLUTIONARY HIS NEIGHBORS EAGERLY CARRIED OUT HIS INSTRUCTIONS NOT ANYMORE HIS LECTURES ON HOW TO READ AN ELECTRICITY METER ARE LESS POPULAR THAN EXHORTATIONS TO OVERTHROW THE ENEMY ON EVERY STREET CORNER A NEIGHBOR ASKS MIKE WHAT'S HAPPENED TO YOU WHAT ABOUT THE REVOLUTION MR XEGO EMBRACES THE DOUBTERS AND PATIENTLY EXPLAINS AGAIN AND AGAIN THAT THE COUNTRY IS CHANGING IT TAKES THE POWER OF AN ELEPHANT TO GET PEOPLE TO THINK DIFFERENTLY HE SAYS WEARILY SOUTH AFRICA'S ODYSSEY FROM APARTHEID TO DEMOCRACY IS PROVING TO BE AN ARDUOUS AND PERILOUS PASSAGE YET IN POLITICAL CIRCLES PROGRESS IS BEING MADE TWO DOZEN ORGANIZATIONS SPANNING SOUTH AFRICA'S RACIAL AND POLITICAL DIVIDE ARE NEARING AGREEMENT ON A TRANSITIONAL GOVERNMENT THAT WILL HAMMER OUT A NEW CONSTITUTION AND OVERSEE THE FIRST POSTAPARTHEID ELECTION PROVISIONALLY SET FOR APRIL 27 AND THEREAFTER THE FIRST MULTIRACIAL GOVERNMENT MR XEGO WHO EARNED HIS HIGHSCHOOL DIPLOMA WHILE BREAKING ROCKS AS A POLITICAL PRISONER MAY BECOME A MEMBER OF PARLIAMENT TRUE CHANGE THOUGH WILL BE MEASURED BY THINGS OTHER THAN ELECTIONS AND CONSTITUTIONS THE COUNTRY HAS EMBARKED ON THE SECOND GREAT TREK IN ITS HISTORY THE FIRST IN THE 19TH CENTURY WAS A PHYSICALLY TRYING TRIP BY AFRIKANERS DRIVING THEIR OX WAGONS NORTH INTO THE AFRICAN INTERIOR FROM THE COLONIZED CAPE THE CURRENT JOURNEY WHICH BEGAN IN 1990 WHEN ANC LEADER NELSON MANDELA WAS FREED AFTER 27 YEARS IN PRISON IS A MENTALLY TAXING TRIP FROM INTOLERANCE TO TOLERANCE FROM LIVING APART TO LIVING TOGETHER REVISITING SOUTH AFRICA AFTER A TWOYEAR ABSENCE PROVIDES A YARDSTICK OF HOW FAR THE COUNTRY HAS COME AND HOW FAR IT HAS YET TO GO THESE ARE MY SECURITY SAYS CORA DE WET BRINGING A PACK OF YAPPING DOGS TO HEEL THEY'RE VERY RACIST DOGS NOTES HER HUSBAND PHIL ONLY GO AFTER BLACKS NOT ANYMORE LAUGHS MRS DE WET THEY ALMOST GOT A WHITE MAN THE OTHER DAY CHANGE IS COMING SLOWLY TO THE RURAL WHITECONSERVATIVE HEARTLAND OF SOUTH AFRICA WE DON'T LIKE IT SAYS WILLIE SCHEEPERS THE MAYOR OF MARBLE HALL CAPITAL OF THE COUNTRY'S COTTON BELT BUT THERE DOESN'T SEEM TO BE ANYTHING WE CAN DO ABOUT IT SHORTLY AFTER MR MANDELA'S RELEASE THE WHITE RESIDENTS OF MARBLE HALL WERE CONFRONTING PREDICTIONS OF THE APOCALYPSE WITH STERN DEFIANCE NEVILLE MALLINSON COLLECTOR OF BIBLES AND OWNER OF A SHELL GASOLINE STATION SEARCHED THE BOOK OF REVELATIONS AND PRONOUNCED MR MANDELA THE ANTICHRIST MR SCHEEPERS VOWED NEVER TO BE SUCKERED BY THE BLACKS INTO POWERSHARING TALKS THE DE WETS WHO MOVED TO MARBLE HALL FROM KENYA AFTER BLACK INDEPENDENCE THERE SAID THEY WOULD DIG IN THEIR HEELS AND FIGHT TO THE END SINCE THEN TWO BLACK AND TWO INDIAN FAMILIES HAVE MOVED INTO THE PREVIOUSLY WHITESONLY AREA OF TOWN NONWHITES NO LONGER SHACKLED BY A LATENIGHT CURFEW ARE FREE TO WALK THE STREETS THE SCHOOLS HAVE EVEN BEEN OPENED TO ALL RACES THE APOCALYPSE HAS YET TO ARRIVE STILL RACIAL TENSIONS ARE HIGH A GANG OF WHITES BROODING ABOUT THE FATE OF THEIR NATION OVER A BOTTLE OF WHISKEY CHASED DOWN A BLACK MAN IN THEIR PICKUP TRUCK AND MURDERED HIM BUT FOR THE MOST PART THE FIGHT SEEMS TO BE LEAVING MARBLE HALL MR MALLINSON NOW SAYS THERE IS NOTHING TO DO BUT MAKE PEACE WITH GOD ST PAUL WROTE THEY SHALL TALK IN FINE WORDS AND MANY SHALL FOLLOW' HE SAYS BY WAY OF PREDICTING A LARGE BLACK MAJORITY IN THE COMING ELECTIONS THE DE WETS ARE THINKING OF MOVING TO PARAGUAY I HEAR THEY'RE PRACTICALLY GIVING AWAY LAND TO FARMERS THERE SAYS MR DE WET THERE'S GOOD RAINFALL PLENTY OF ROOM FOR GRAZING ADDS HIS WIFE MR SCHEEPERS HAS ALREADY SOLD HIS FARM FREEING HIM TO MOVE HIS FAMILY TO A WHITE HOMELAND ON THE OUTSIDE CHANCE THAT THE CONSERVATIVE PARTY CAN NEGOTIATE SUCH A TERRITORY IN THE CONSTITUTIONAL TALKS UNTIL THEN THE WALLS KEEP CLOSING IN ON THEIR PRIVILEGED LIVES AT A SUITANDTIE CEREMONY RECENTLY MR MALLINSON A MEMBER OF THE CITY COUNCIL DRAPED THE RED MAYORAL ROBE OVER MR SCHEEPERS'S SHOULDERS FOR ANOTHER TERM IT MAY BE THE LAST ONE THE NATIONAL GOVERNMENT HAS TOLD MARBLE HALL THAT WITHIN A YEAR IT WILL LIKELY BE MERGING WITH SIYABUSA A NEARBY BLACK TOWN BLACKS WOULD THEN HEAVILY OUTNUMBER WHITES IN MARBLE HALL AND AFTER ELECTIONS MR SCHEEPERS WOULD BE DUTYBOUND TO PUT THE ROBE ON A BLACK HE WOULD RATHER LEAVE TOWN I'M NOT A RACIST I WILL PUT A ROBE ON A MAYOR IN SIYABUSA SAYS MR SCHEEPERS AFTER HIS REINAUGURATION BUT I WON'T DO IT IN MARBLE HALL I WAS BORN HERE AT THE DON'T WORRY BE HAPPY DISCO SOME OF MARBLE HALL'S BLACKS ARE PARTYING THE NIGHT AWAY SPILLING ONTO THE MANICURED GROUNDS OF THE MUNICIPAL GOVERNMENT IT IS NEARLY MIDNIGHT THEY MAY NOT YET BE INSIDE CITY HALL BUT AT LEAST NOW THEY ARE SITTING ON ITS LAWN THE WHITELED GOVERNMENT OF PRESIDENT FW DE KLERK THE MAN WHO BOLDLY RELEASED MR MANDELA BUT WHO CAN'T BRING HIMSELF TO UNCONDITIONALLY APOLOGIZE FOR APARTHEID SAYS SOUTH AFRICANS SHOULD FORGET THE PAST AND EMBRACE THE NEW SOUTH AFRICA BUT EMSON BANDA FOR ONE WON'T A SEVERE BEATING BY GOVERNMENTINSTIGATED VIGILANTES IN 1987 ERASED MUCH OF HIS MEMORY SO HE CARRIES THE PAST IN AN ORANGE SHOE BOX INSIDE ARE HUNDREDS OF INDEX CARDS RECORDING UNEXPLAINED DEATHS AND UNPROSECUTED SLAYINGS DURING THE BRUTAL CRACKDOWN ON ANTIAPARTHEID ACTIVISTS BETWEEN 1985 AND 1989 MR BANDA RIFFLES THROUGH THE CARDS LIKE A BLACKJACK DEALER DEAD DEAD DEAD HE WHISPERS BEFORE WE MOVE INTO A NEW SOUTH AFRICA WE MUST CLEAR UP ALL THE QUESTIONS FROM THE OLD SOUTH AFRICA INCLUDING HIS CASE MR BANDA WAS AN ACTIVIST IN UITENHAGE AN INDUSTRIAL CITY NORTH OF PORT ELIZABETH HE HELPED FEED THE HUNGRY COMFORT THE UNEMPLOYED COUNSEL THE STUDENTS HE ALSO BROUGHT INSTANCES OF CIVILRIGHTS VIOLATIONS TO THE ATTENTION OF WHITE SOCIAL WORKERS AND LAWYERS ON JUNE 27 1986 MR BANDA WAS ARRESTED THEN CAME 349 DAYS OF DETENTION WITHOUT TRIAL NO CHARGES WERE FILED NO QUESTIONS WERE ASKED NO COURT APPEARANCE WAS SCHEDULED THE PRISONER WENT MAD HE SHUTTLED BETWEEN HIS CELL AND THE MENTAL HOSPITAL AT ONE STAGE HE WAS SO FRUSTRATED HE TORE OUT CHUNKS OF HIS HAIR MEDICAL RECORDS REPORTED HE WAS ON THE BRINK OF SUICIDE THE LAWANDORDER MINISTER SAID THE PRISONER HAD DERMATITIS ON JUNE 11 1987 MR BANDA WAS SUDDENLY RELEASED TWO WEEKS LATER HE WAS BEATEN TO WITHIN AN INCH OF HIS LIFE TODAY MR BANDA 43 IDLY WALKS THE STREETS OF UITENHAGE WEARING A BLUE TOYOTA CAP BEARING THE SLOGAN EVERYTHING KEEPS GOING RIGHT BUT SINCE HIS DETENTION NOTHING HAS EVEN AFTER THE RELEASE OF MR MANDELA AND THE SCRAPPING OF MUCH OF APARTHEID HE STILL HAS NO JOB STILL HAS NO FRONT TEETH STILL HAS HEADACHES AND STILL STRUGGLES TO REMEMBER FACES AND PLACES THE NEW SOUTH AFRICA HE RECKONS OWES HIM A JOB AND A HOUSE IF NOT HIS MEMORY TOTING HIS ORANGE BOX MR BANDA RARELY MISSES A DAY OF THE INQUEST INVESTIGATING THE 1985 MURDERS OF MATTHEW GONIWE AND THREE OTHER BLACK ACTIVISTS LIKE COUNTRIES IN EASTERN EUROPE WHERE FORMER COMMUNISTS STILL RETAIN SOME POSITIONS MEMBERS OF THE POLICE FORCE THEN ARE STILL POLICEMEN TODAY NOW OUT OF THE GONIWE TRIAL COMES TESTIMONY THAT SOME OF THESE SAME MEN ORDERED THE PERMANENT REMOVAL FROM SOCIETY OF THE BLACK ACTIVISTS MR BANDA IS CONVINCED THAT THE CASES IN HIS BOX ARE ALL LINKED RUBBING HIS TEMPLES MR BANDA FINALLY CLOSES THE ORANGE BOX HE TUCKS IT SECURELY UNDER HIS RIGHT ARM AND CARRIES IT BACK INTO THE STREETS OF THE NEW SOUTH AFRICA AS THE DRY WINDS OF WINTER WHIP ACROSS THE WESTERN TRANSVAAL THE PEOPLE OF THE MOGOPA TRIBE ARE BACK HOME AGAIN BUT THEY DON'T KNOW WHETHER TO LAUGH OR CRY THEY WON A MAJOR VICTORY WHEN THEY WERE ALLOWED TO RETURN TO THE LAND THE GOVERNMENT TOOK FROM THEM IN 1984 BUT THEY STILL DON'T HAVE DEEDS TO THE PROPERTY OR BRICKS TO REBUILD THE HOUSES THE GOVERNMENT SMASHED OR PLOWS TO TILL THE FIELDS THAT WERE TURNED INTO GRAZING LAND MOSTLY THEY CRY WE'RE TRYING TO BELIEVE IN THE GOVERNMENT BUT THEY KEEP DODGING US SAYS JOSEPH KGATITSOE BOBBING LIKE A SHADOW BOXER WE'RE STILL SUFFERING THAT IS ONE THING THAT HASN'T CHANGED YET REPEALING APARTHEID LAWS IS ONE THING REPEALING ITS MISERY IS QUITE ANOTHER WE ARE GETTING OLD SAYS 54YEAROLD YVONNE TLADINYANE ELECTIONS AND A NEW GOVERNMENT MUST COME SOON SO THAT WE CAN HAVE A FEW YEARS OF LUXURY IN OUR LIFE MOGOPA'S MISERY IS THE MOST NOTORIOUS LEGACY OF FORCED REMOVAL APARTHEID'S BLUNT EXPRESSION FOR UPROOTING BLACK COMMUNITIES TOO CLOSE TO WHITE AREAS AND RELOCATING THEM IN ONE OF THE BLACK HOMELANDS FOR DECADES THE MOGOPAS HAD PROSPERED ON THEIR LAND A TWO HOUR DRIVE WEST OF JOHANNESBURG LIVING IN NEAT STONE HOUSES RAISING LIVESTOCK AND TENDING TO A HOST OF CROPS AND FRUIT TREES THEN CAME THE VALENTINE'S DAY DEMOLITION WHEN GOVERNMENT BULLDOZERS GROUND IT ALL TO BITS FOR THE NEXT SEVEN YEARS THE MOGOPAS LITERALLY WANDERED IN THE WILDERNESS MOVING FROM ONE BARREN PATCH OF LAND TO ANOTHER IN THE HOMELAND CALLED BOPHUTHATSWANA IN 1990 THE GOVERNMENT SCRAPPED APARTHEID'S LAND LAWS WHICH RESERVED 87 OF THE COUNTRY FOR WHITES WHO MAKE UP LESS THAN 20 OF THE POPULATION THE MOGOPAS HURRIED HOME BUT AS THE NEW SOUTH AFRICA DAWNS THE MOGOPAS ARE LITTLE MORE THAN SQUATTERS MS TLADINYANE AND MR KGATITSOE THE TWO COMMUNITY LEADERS STAND IN AN OPEN FIELD WHERE THE FIVEROOM TLADINYANE FAMILY HOUSE USED TO BE FOR SO MANY YEARS THEY HAVE BEEN PRAYING FOR A BLACK GOVERNMENT TO MAKE THINGS RIGHT AGAIN SURELY SAYS MR KGATITSOE 63 FELLOW BLACKS WON'T FORGET THEM SO FAR THOUGH NO ONE FROM THE ANC HAS VISITED WE'RE WONDERING IF THINGS WILL REALLY CHANGE SAYS MS TLADINYANE SEVERAL MONTHS AGO LIESL FICHARDT DID WHAT ANY GOOD DAUGHTER WOULD DO A LAWYER IN CAPE TOWN SHE FLEW NORTH TO JOHANNESBURG TO INVESTIGATE PRISON CONDITIONS FOR A HUMANRIGHTS STUDY ON THE WAY BACK SHE SPENT A NIGHT WITH HER PARENTS IN BLOEMFONTEIN THE CAPITAL OF ORANGE FREE STATE IT WAS GREAT THEY ASKED ME FOR MY VIEWS ON PRISONS AND THEY DIDN'T TRY TO IMPOSE THEIR THOUGHTS ON ME SHE SAYS STILL INCREDULOUS AT THIS TURNING POINT IN HER AFRIKANER FAMILY IT WAS AS IF THE REALIZATION DAWNED ON THEM THAT THINGS WERE CHANGING IN THE COUNTRY THEY HAVE GRANTED ME SOME SPACE IT'S WONDERFUL FROM THE MULTIPARTY NEGOTIATING TABLE IN JOHANNESBURG WHERE APARTHEID'S MASTERS SIT ACROSS FROM PEOPLE THEY ONCE BRANDED AS TERRORISTS TO KITCHEN TABLES IN PRIVATE HOMES SOUTH AFRICANS ARE FINALLY TALKING TO EACH OTHER THAT ALONE IS CONSIDERED MIRACULOUS PROGRESS GROWING UP IN THE FICHARDT HOUSEHOLD WASN'T EXACTLY GOOD TRAINING FOR THE DEBATING CLUB THE DUTCH REFORMED CHURCH SET THE TONE FOR RELIGIOUS AND SOCIAL MATTERS THE NATIONAL PARTY FOR POLITICS EWALD FICHARDT THE MAYOR OF BLOEMFONTEIN ONE OF THE MOST CONSERVATIVE CITIES IN THE COUNTRY ECHOED THEM BOTH MS FICHARDT ASKED FEW QUESTIONS UNTIL SHE LEFT FOR COLLEGE THEN IN 1989 IN HER FINAL YEAR AT STELLENBOSCH UNIVERSITY SHE JOINED A GROUP OF STUDENTS ON A TRIP TO LUSAKA ZAMBIA TO VISIT THE EXILED ANC IT WAS A JOURNEY THAT SHATTERED THE FOUNDATIONS OF A FAMILY AND OF GREATER AFRIKANERDOM DID MY PARENTS LIE TO ME DID MY CHURCH LIE TO ME DID MY GOVERNMENT LIE TO ME DID I LIE TO MYSELF MS FICHARDT ASKED AFTER THREE DAYS OF LAUGHING AND CRYING WITH PEOPLE SHE HAD ALWAYS BEEN TOLD WERE AS EVIL AS SATAN MR FICHARDT THOUGHT HIS DAUGHTER HAD GONE TEMPORARILY INSANE FEELING REJECTED BY MOST AFRIKANERS WHO VIEWED THE TRIP AS TREACHERY MS FICHARDT WENT TO THE US FIRST TO STUDY AT NOTRE DAME AND THEN TO WORK FOR THE HUMAN RIGHTS WATCH IN NEW YORK MEANWHILE HER COUNTRY BEGAN TO CHANGE THE DUTCH REFORMED CHURCH CONFESSED THAT APARTHEID WAS A SIN THE NATIONAL PARTY UNBANNED THE ANC AND OPENED NEGOTIATIONS WITH THE DEVIL THE SCALES FELL FROM MR FICHARDT'S EYES HIS DAUGHTER WASN'T A LUNATIC SHE WAS A PIONEER BEFORE SHE RETURNED TO SOUTH AFRICA MS FICHARDT WHO IS NOW IN HER 20S AND HER PARENTS TRAVELED AROUND AMERICA FOR A MONTH REDISCOVERING EACH OTHER THE MYTHS OF AFRIKANERDOM HAD EXPLODED HER MIND IS NOW HER OWN IN THE SQUALID BLACK TOWNSHIPS WHERE HE HAS SPENT HIS ENTIRE LIFE MIKE XEGO TOO IS MAKING A DISCOVERY TEARING DOWN A SOCIETY IS EASIER THAN BUILDING A NEW ONE DRIVING AROUND THE NEIGHBORHOODS MR XEGO ENCOUNTERS IRONY ON EVERY STREET THE ANC'S STRATEGY OF REVOLUTION WAS TO MAKE THE TOWNSHIPS UNGOVERNABLE FRUSTRATE THE WHITE ADMINISTRATION BOYCOTT ATTACK NOW WITH THE ANC CLOSE TO TAKING THE REINS OF POWER IT IS STRUGGLING TO MAKE THE TOWNSHIPS GOVERNABLE AGAIN FOR YEARS WE HAVE DEMANDED ELECTRICITY HOUSING SANITATION TARRED ROADS KNOWING THAT THE WHITE GOVERNMENT WOULDN'T PROVIDE THEM MR XEGO SAYS NOW THESE SAME DEMANDS WILL BE PUT ON THE DOORSTEP OF THE NEW GOVERNMENT WE MUST FACE UP TO REALITY WE MUST ADDRESS THESE THINGS NOW AS A MATTER OF URGENCY MR XEGO SAYS SUMMONING THE STRENGTH OF AN ELEPHANT OR WE MIGHT BE BESIEGED BY COUNTERREVOLUTIONARIES IN OTHER WORDS BY PEOPLE LIKE HE USED TO BE 9306080028 930608 MANAGEMENT BENEFITING FROM OPERATING EXPERIENCE MORE FINANCE CHIEFS BECOME STRATEGISTS BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL HIKING OVER A HILLSIDE IN VAIL COLO ALEX MANDL POINT MAN FOR AMERICAN TELEPHONE & TELEGRAPH CO'S PUSH INTO CELLULAR PHONES WRESTLED WITH A MAKEORBREAK CHANCE TO REVIVE A TROUBLED NEGOTIATION LET'S DO IT MR MANDL SAID TO HIS COMPANION RECOMMENDING A CREATIVE COMPLICATED AND POTENTIALLY VERY COSTLY SCHEME TO BUY PART OF MCCAW CELLULAR COMMUNICATIONS INC FOR MANY TOP EXECUTIVES EMBRACING A SET OF UNCERTAINTIES AND PLUNGING INTO A RISKY VENTURE IS NOTHING MORE THAN EARNING A DAY'S PAY BUT WHAT MADE MR MANDL'S DECISION UNUSUAL WAS THAT HE IS AT&T'S CHIEF FINANCIAL OFFICER ONE OF THE OFTMALIGNED BEAN COUNTERS TRADITIONALLY CAST IN SUPPORTING ROLES DURING BIG DEALS THAT'S THE KIND OF DECISION THAT AN OLDSTYLE CFO WOULD HAVE WRUNG HIS HANDS OVER RECALLS MCCAW VICE CHAIRMAN WAYNE PERRY WHO WAS MR MANDL'S COMPANION IN VAIL'S WOODS MR MANDL IS ONE OF A GROWING NUMBER OF CHIEF FINANCIAL OFFICERS EXPANDING THE DEFINITION OF THE TOP FINANCIAL JOB WELL BEYOND ITS TRADITIONAL NUMBERSCRUNCHING ORIGIN A FEW FINANCE CHIEFS ACHIEVED HIGHPROFILE STATUS AS FUNDRAISING WHIZZES DURING THE GOGO '80S THEN WHEN THE RECESSION FORCED MANY COMPANIES TO CONSIDER DOWNSIZING THE INTIMATE KNOWLEDGE CHIEF FINANCIAL OFFICERS HAD OF EVERY FACET OF OPERATIONS BROADENED THEIR INFLUENCE NOW THE CHIEF FINANCIAL OFFICER AS STRATEGIC PLANNER IS EMERGING THE REDEFINED ROLE HEADHUNTERS AND MANAGEMENT CONSULTANTS SAY IS BORN OF THE SLUGGISH ECONOMIC RECOVERY IN AN ERA OF HEIGHTENED COMPETITION AND HARDTOMAKESTICK PRICE INCREASES THE FINANCIAL FINE POINTS OF ANY NEW STRATEGY ARE MORE CRUCIAL THAN EVER BEFORE MANY FINANCE CHIEFS CAN PROVIDE THAT DATA AS WELL AS SAVVY JUDGMENT ABOUT PRODUCTS MARKETING AND OTHER AREAS THE EXPERTS SAY CEOS HAVE DECIDED THAT CONSTANT RESTRUCTURING HAS TO TAKE PLACE AND THE KEY PLACE WHERE IT COMES TOGETHER IS FINANCE SAYS STEPHEN SCROGGINS MANAGING DIRECTOR OF RUSSELL REYNOLDS ASSOCIATES A HEADHUNTING FIRM AT RUSSELL REYNOLDS NEARLY ALL CEOS NOW SEEKING FINANCE CHIEFS WANT SOMEONE WITH SOUND BUSINESS JUDGMENT MORE THAN JUST A CFO AND IN A RECENT SURVEY BY HEADHUNTERS KORN/FERRY INTERNATIONAL FORTUNE 100 CHIEF FINANCIAL OFFICERS ALMOST UNANIMOUSLY DESCRIBED THEMSELVES AS MORE OF A PARTNER WITH THE CEO THAN THEY USED TO BE IT IS TOO SOON TO TELL WHETHER THE NEW ROLE MEANS THAT MORE FINANCE CHIEFS ARE DESTINED FOR THE TOP JOB HEADHUNTERS SAY A FEW COMPANIES LIKE GENERAL ELECTRIC CO HAVE LONG GIVEN FINANCE PEOPLE STRATEGIC ROLES THE RESULT GE'S FINANCE PEOPLE ARE PRIME CANDIDATES FOR CEO POSITIONS IN ALMOST ANY OTHER BUSINESS SAYS GLENN VAN DOREN PRESIDENT OF THE ASSOCIATION OF EXECUTIVE SEARCH CONSULTANTS A TRADE GROUP THE BREADTH OF THE REVOLUTION ALSO IS UNCERTAIN THIS IS A LARGECOMPANY PHENOMENON SAYS WINDLE PRIEM KORN/FERRY MANAGING DIRECTOR HE CITES SHAREHOLDER ACTIVISM AT BIG INDUSTRIAL COMPANIES LIKE EASTMAN KODAK CO AND INTERNATIONAL BUSINESS MACHINES CORP THAT FORCES CEOS TO MAXIMIZE EARNINGS THE LOGICAL PLACE THIS FALLS IS THE SHOULDERS OF THE CFO MR PRIEM SAYS BUT WHERE INSTITUTIONAL INVESTORS AREN'T PUSHING FOR CHANGE CHIEF EXECUTIVE OFFICERS TEND TO USE CHIEF FINANCIAL OFFICERS MOSTLY FOR BACKSEAT NUMBERCRUNCHING CHORES AND SOME FINANCE CHIEFS MAY OVERESTIMATE THE DEGREE TO WHICH THEIR ROLE HAS CHANGED CONCLUDES A STUDY OF 180 MEDIUM TO LARGE COMPANIES FUNDED BY THE FINANCIAL EXECUTIVES RESEARCH BOARD THE STUDY COMPARES RESPONSES OF FINANCIAL AND NONFINANCIAL MANAGERS TO QUESTIONS ABOUT THE CHANGING ROLE OF FINANCE CHIEFS THE QUESTIONS ADDRESS THE DEGREE TO WHICH THE COMPANIES' FINANCE UNITS HAVE MOVED FROM THE ROLE OF CORPORATE POLICEMAN TO THAT OF BUSINESS ADVOCATE IN WHICH FINANCIAL MANAGERS OFFER STRATEGY TO OPERATING UNITS IN GENERAL WHEN FINANCIAL MANAGERS CREDIT THEMSELVES FOR CHANGE NONFINANCIAL MANAGERS IN THE SAME COMPANY AGREE LESS THAN 15 OF THE TIME COAUTHOR STEPHEN JABLONSKY SAYS TRADITIONALLY FINANCE CHIEFS HAVE SPENT 90 OF THEIR TIME OVERSEEING RECEIVABLES AND PAYABLES CLOSING ACCOUNTING BOOKS PREPARING ANNUAL REPORTS MEETING REGULATORY REQUIREMENTS BUDGETING RAISING ROUTINE FUNDS AND ISSUING REPORTS THAT MEASURE ACTUAL PERFORMANCE AGAINST PROJECTIONS SAYS ROBERT HOWELL A NEW YORK UNIVERSITY PROFESSOR PROJECTS LIKE A STOCK OFFERING OR A MERGER CLAIMED REMAINING TIME FINANCE CHIEFS BREAKING THE MOLD TEND TO HAVE A COMMON ELEMENT OPERATING EXPERIENCE THAT MAKES THEM FAR MORE ABLE TO DO THE TOUGH THINGS MR PRIEM SAYS MOST FINANCE CHIEFS HAVE TRADITIONALLY COME UP THROUGH A SILO THE NARROW PATH FROM ACCOUNTANT TO MANAGER TO ASSISTANT CONTROLLER TO CONTROLLER TO CHIEF FINANCIAL OFFICER THE OLD KNOCK ON A CFO WAS YOU'VE NEVER RUN ANYTHING MR PRIEM SAYS WHATEVER THEIR BACKGROUNDS MANY FINANCE CHIEFS IN RECENT MONTHS HAVE BEEN EARNING THEIR STRIPES BY PARING DOWN THEIR OWN FINANCE OPERATIONS ONE OF NUMEROUS OUTSIDERS HIRED TO SHAKE UP AT&T BY CEO ROBERT ALLEN ALEX MANDL ARRIVED LAST YEAR FROM SEALAND SERVICES INC WHERE HE HAD BEEN CEO IN THREE YEARS MR MANDL HAD MADE THE MONEYLOSING CSX CORP UNIT PROFITABLE BY INCREASING REVENUE DECENTRALIZING OPERATIONS AND NEGOTIATING INTERNATIONAL DEALS RUNNING A SIGNIFICANT COMPANY GIVES YOU A VERY DIFFERENT PERSPECTIVE ON HOW THE FINANCIAL FUNCTION SHOULD BE PERFORMED SAYS MR MANDL WHOSE EARLIER CAREER AT CSX AND BOISECASCADE WAS A BLEND OF FINANCE AND OPERATIONS MR MANDL WHO ALSO RUNS AT&T CAPITAL CORP AND SERVES ON AT&T'S FIVEPERSON OPERATING COMMITTEE FOCUSES ON WHAT'S DRIVING THE NUMBERS NOT THE NUMBERS THEMSELVES ANOTHER MODERN CHIEF FINANCIAL OFFICER IS JEROME YORK THE FORMER CHRYSLER CORP FINANCE CHIEF WHO LAST MONTH TOOK IBM'S TOP FINANCE POST A WEST POINT AND MASSACHUSETTS INSTITUTE OF TECHNOLOGY GRADUATE HE BEGAN HIS AUTOMOTIVE CAREER AS A GENERAL MOTORS CORP ENGINEER HE ADDED AN MBA AND MOVED INTO PLANNING AT FORD MOTOR CO A MIX OF OPERATING AND FINANCE JOBS FOLLOWED AS CHRYSLER FINANCE CHIEF SINCE 1990 HE HELPED CUT 3 BILLION IN COSTS AND SOLD MORE THAN 3 BILLION OF NONCORE ASSETS YOU JUST CAN'T MINDLESSLY TAKE ACROSSTHEBOARD COSTS OUT MR YORK SAYS YOU HAVE TO UNDERSTAND WHERE THE EFFICIENCY LEVERS ARE LEARNING IBM'S LEVERS IS HIS CHALLENGE WITH NO BACKGROUND IN COMPUTERS HE PLANS EXTENSIVE VISITS TO FACTORIES DEALERS SUPPLIERS AND CUSTOMERS IN PLANO TEXAS FRITOLAY INC FINANCE CHIEF MICHAEL D WHITE FIGURES HE SPENDS MORE THAN HALF HIS TIME ON SUCH VISITS TO IDENTIFY FASTGROWING CUSTOMERS OF THE PEPSICO INC UNIT AND WAYS TO SERVE THEM MORE CHEAPLY ONE NIGHT RECENTLY FOUND HIM IN CINCINNATI DINING WITH MERCHANDISING PEOPLE FROM CUSTOMER KROGER CO IN THE PAST THE CFO'S BIGGEST ROLE WAS TO FINANCE GROWTH BUT GROWTH USED TO BE EASIER MR WHITE SAYS IT'S A LOT MORE COMPETITIVE OUT THERE NOW AT UNUM CORP A SPECIALTY INSURANCE COMPANY THE SHIFT TO STRATEGIC PARTNER WAS BEGUN 15 MONTHS AGO WHEN UNANTICIPATED PROBLEMS IN SEVERAL BUSINESS SEGMENTS SURFACED FINANCE CHIEF RODNEY HOOK SAYS OUR CEO HAS TOLD US THAT HE'S NOT INTERESTED IN POST MORTEMS MR HOOK SAYS WE'RE NOW LOOKING FOR LEADING INDICATORS INSTEAD OF BEING SCOREKEEPER AT AT&T CEO ROBERT ALLEN HANDED MR MANDL THE MCCAW NEGOTIATING ROLE AS PART OF A BROADER ASSIGNMENT TO FIND THE COMPANY'S PLACE IN WIRELESS TECHNOLOGY MR MANDL HAS RELISHED THE DEAL MAKINGEVEN THE ROUGH SPOT IN VAIL THE ISSUE LAST YEAR AS HE HIKED MCCAW'S WORRY THAT IT WOULD BE BURNED FOR NOT GOING TO THE CAPITAL MARKETS TO RAISE MONEY AT THEN FAVORABLE RATES MCCAW'S MR PERRY RECALLS THE PROTRACTED NEGOTIATIONS EFFECTIVELY PRECLUDED MCCAW FROM SEEKING FUNDS BECAUSE IT WOULD HAVE TO REVEAL THE TALKS SO MCCAW PROPOSED THAT AT&T AGREE TO BUY 400 MILLION OF MCCAW STOCK BASED ON THAT DAY'S CLOSING PRICE EVEN IF AT&T AND MCCAW COULDN'T REACH TERMS ON A DEAL THAT WOULD ULTIMATELY GIVE AT&T CONTROL MR MANDL WHOSE AGREEMENT TO THE PUT OPTION SUBSEQUENTLY WAS SUPPORTED BY AT&T'S BOARD OF DIRECTORS IS GENERALLY CREDITED WITH STRUCTURING THE TENTATIVE 382 BILLION DEAL THAT AT&T AND MCCAW ANNOUNCED LAST NOVEMBER HE IS NOW HAMMERING OUT OPERATING DETAILS 9306080027 930608 LEISURE & ARTS THE GALLERY GERMANS SEE WORK OF NEW YORK SCHOOL OTHER YANKS BY DEBRA JO IMMERGUT BERLIN THE MAYOR OF BERLIN LIKELY EXPECTED A VIP PASS BUT PROBABLY DID NOT ANTICIPATE BEING PRESENTED WITH A BANANA AS HE ARRIVED AT THE OPENING OF THE LONGAWAITED EXHIBITION AMERICAN ART IN THE 20TH CENTURY PAINTING AND SCULPTURE 19131993 ON DISPLAY UNTIL JULY 25 AT THE MARTINGROPIUSBAU THE BANANAS WERE BESTOWED UPON THE SURPRISED MAYOR EBERHARD DIEPGEN AND TO EXHIBITION COCURATORS CHRISTOS M JOACHIMIDES AND NORMAN ROSENTHAL BY A CONTINGENT OF GUERRILLA GIRLS A GROUP OF ARTISTS WHO SERVE AS THE FEMINIST CONSCIENCE OF THE NEW YORK GALLERY SCENE BRINGING ALONG THEIR GORILLA MASKS AND TOTING POSTERS READING YOU'RE NOT SEEING THE WHOLE PICTURE THREE GIRLS HAD TRAVELED TRANSATLANTICALLY TO PROTEST AGAINST THE INCLUSION OF ONLY FIVE WOMEN IN A SHOW OF 66 ARTISTS' WORK MEANWHILE THEORIES ABOUT CENTRAL INTELLIGENCE AGENCY SPONSORSHIP OF AMERICAN ART EXHIBITS IN EUROPE WERE BEING POSED IN A CITY MAGAZINE HAD ART FROM THE US SERVED AS A MEDIUM FOR COLD WAR MESSAGES WAS IT USHERED IN LIKE COCACOLA WITH THE MARSHALL PLAN WAS IT ALL MERELY AN INSTRUMENT OF HEGEMONIAL US IMPERIALISM WITH ITS BRAVURA TITLE RINGING LIKE A CHALLENGE AMERICAN ART IN THE 20TH CENTURY WAS DESTINED AND DESIGNED TO MAKE WAVES AT THE VORTEX OF ALL THIS POLITICAL HUBBUB HOWEVER IS A SHOW OF GREAT BEAUTY 250 AMERICANMADE PAINTINGS AND SCULPTURES LUMINOUS AND COLORFUL AUSTERE AND ENIGMATIC NO ONE CAN REALLY PICK A FIGHT OVER THE POWER OF WHAT IS DISPLAYED HERE CHARLES DEMUTH'S UNFORGETTABLE I SAW THE FIGURE 5 IN GOLD 1928 ON LOAN FROM THE METROPOLITAN MUSEUM OF ART THE DRAMATIC BLAZINGS OF CLYFFORD STILL THE RHYTHMIC PURITY OF AGNES MARTIN'S PALE CANVASES THOUGH IT LOSES STRENGTH IN ITS LATER SECTIONS FOR THE MOST PART AMERICAN ART IN THE 20TH CENTURY IS A GATHERING OF INDISPUTABLY EXTRAORDINARY ARTWORKS THE BATTLE THEN MUST BE WAGED OVER WHAT IS NOT HERE AND WHY WE WERE NOT TRYING TO COMPILE A DICTIONARY THAT WOULD HAVE BEEN A POINTLESS SILLY EXERCISE SAYS COCURATOR ROSENTHAL EXHIBITIONS SECRETARY AT LONDON'S ROYAL ACADEMY OF ARTS WHERE THE EXHIBIT WILL BE SHOWN FROM SEPT 16 THROUGH DEC 12 INSTEAD HE EXPLAINS HE AND MR JOACHIMIDES SET OUT TO TELL THE STORY OF AMERICAN ART THROUGH EUROPEAN EYES PEERING AT THE NEW WORLD THROUGH A TELESCOPE FIRMLY PLANTED ON OLD WORLD SOIL THEY TRIED TO FOCUS ON ARTISTIC INNOVATIONS THAT CHANGED EUROPEAN PERSPECTIVES ON ARTISTS WHO SHOWED SIGNS OF ENGAGEMENT WITH THE REST OF THE WORLD THE SHOW'S CENTER BOTH PHILOSOPHICALLY AND PHYSICALLY IS THE ABSTRACT EXPRESSIONIST MOVEMENT OF THE 1940S AND '50S A LIGHTFILLED ATRIUM AT THE BUILDING'S HEART HOLDS WORKS BY A RUTHLESSLY WINNOWED GROUPING OF MASTERS OF THE GENRE WILLEM DE KOONING DAVID SMITH BARNETT NEWMAN MARK ROTHKO FRANZ KLINE SAM FRANCIS AD REINHARDT AND JACKSON POLLOCK WHOM THE CURATORS ANOINT AS THE AMERICAN PICASSO POLLOCK'S WORK IS GIVEN THE MOST PROMINENT PLAY ESPECIALLY HIS LARGEST WORK EVER THE LUSH 1943 MURAL COAXED FROM ITS HOME AT THE UNIVERSITY OF IOWA MUSEUM OF ART THE TRUTH OF AMERICAN ART IS A QUITE SIMPLE ONE ASSERTS MR ROSENTHAL ABSTRACT EXPRESSIONISM IS THE GREAT MOMENT THAT MADE EVERYTHING POSSIBLE MOREOVER HE SAYS WHEN EUROPEAN SOCIETY WAS COLLAPSING DURING WORLD WAR II THESE AMERICANS SAVED THE LANGUAGE OF ART THE REST OF THE EXHIBITION AND IN THE CURATORS' VIEW THE REST OF ART THAT MATTERS IN THE 20THCENTURY US EITHER LEADS UP TO OR AWAY FROM WHAT MR ROSENTHAL CALLS THE GREAT THROW OF THE DICE OF THE HEROICALLY AMBITIOUS ABSTRACT EXPRESSIONISTS THE LEADUP BEGINS WITH THE ARMORY SHOW OF 1913 IN NEW YORK WHICH PLAYED A LARGE PART IN ESTABLISHING MODERNISM AS A FORCE IN AMERICAN ART SOME ARTISTS EXHIBITED IN THE 1913 SHOW ARE REPRESENTED HERE MARCEL DUCHAMP IS THE SOLE FOREIGNER IN THE CURRENT EXHIBITION EXEMPTED FROM THE REQUIRED US CITIZENSHIP BY VIRTUE OF HIS ENORMOUS INFLUENCE ON AMERICAN ARTISTS DOWN THE LINE FROM MAN RAY TO JEFF KOONS HIS NOTION OF PUTTING ART IN THE SERVICE OF THE MIND CLEARED THE WAY FOR FRANK STELLA'S BLACK PAINTINGS DONALD JUDD'S BOXES AND ANDY WARHOL'S SOUP CANSNOT TO MENTION THE RATHER UNEXCITING INSTALLATIONS AND VIDEO ART THAT ARE THE EXHIBIT'S NOD TO CONCEPTUALISM A ROOM FEATURING '20S AND '30S WORKS BY STUART DAVIS CHARLES DEMUTH AND CHARLES SHEELER AND ANOTHER DEVOTED TO WORKS BY EDWARD HOPPER ARE FULL OF RARE PLEASURES SEEING SUCH QUINTESSENTIAL AMERICANS IN A EUROPEAN SETTING SHEDS A FRESH LIGHT ON THEM AND REINFORCES THEIR ORIGINALITY IN PARTICULAR SHEELER'S EMPTY LANDSCAPES BRIGHT AND HARDEDGED VISIONS OF SKYSCRAPERS AND SMOKESTACKS BENEFIT FROM THIS NEW CONTEXT ROBERT RAUSCHENBERG CY TWOMBLY JASPER JOHNS AND WARHOL DOMINATE THE ROOMS LEADING AWAY FROM THE INNER SANCTUM OF THE ABSTRACT EXPRESSIONISTS POP SCULPTOR JOHN CHAMBERLAIN'S CRUSHED AUTO BODIES SHIMMER ON THE WOODEN FLOORS OF THIS OLD PRUSSIAN MUSEUM LIKE ASTEROIDS JUST ARRIVED FROM AN ALIEN PLANET THE HIGH POINT OF THE POSTPOLLOCK SECTION OF THE EXHIBITION IS THE ROOM DEDICATED TO A STUNNING COLLECTION OF MINIMALIST WORKS BY MR STELLA MS MARTIN ROBERT RYMAN BRICE MARDEN AND MR JUDD AMONG OTHERS HIGHCEILINGED AND BRIGHT IT AND THE CENTRAL ATRIUM ARE THE ONLY ROOMS EXPANSIVE ENOUGH TO GIVE THESE ARTWORKS THE BREATHING SPACE THEY REQUIRE THE CRAMPED AND ORNATE EUROPEAN SPACES OF THE MARTINGROPIUSBAU CANNOT TRULY DO JUSTICE TO THE SCALE OF THESE BIG WORKS FROM A BIG COUNTRY SOME IN THE ART WORLD WISH TOO THAT THE CURATORS' CRAMPED CANON HAD ALLOWED MORE SPACE FOR THE WIDE RANGE OF ARTISTS IN THE US MORE WOMEN MORE MINORITIES THIS EXCLUSION OF SO MANY GROUPS I THINK IN AMERICA YOU COULD NOT HAVE THIS KIND OF EXHIBITION ANYMORE SAYS INGRID WAGNERKANTUSER WHO HEADS A CITYFUNDED PROGRAM FOR FEMALE ARTISTS DER SPIEGEL CHIMED IN WITH A REVIEW CALLING THE SHOW A CANON OF MANLY MUSCLEMEN CRITICS AND ARTISTS ALIKE HAVE EXPRESSED DISMAY THAT MESSRS JOACHIMIDES AND ROSENTHAL WHO HAVE ORGANIZED A WHOLE SERIES OF EXHIBITS IN BERLIN AND LONDON TOGETHER DID NOT SHOW MORE ORIGINALITY DID NOT LOOK BEYOND THE OBVIOUS HIT LIST TO FOCUS ON SOME LESSERKNOWN AMERICANS AT THIS SUGGESTION MR ROSENTHAL MERELY GRINS ENTIRELY CONFIDENT IN HIS CURATORIAL TASTES THE OBVIOUS HE SAYS IS ALWAYS THE MOST ORIGINAL MS IMMERGUT IS A WRITER IN BERLIN 9306080026 930608 HEARD ON THE STREET HIGHPRICED STOCKS CAN TEACH SOME EXPENSIVE LESSONS BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL IF YOU LIKE 200 HAIRCUTS IF YOU LIGHT YOUR CIGARS WITH DOLLAR BILLS IF YOU BUY SUPERPREMIUM GAS FOR YOUR CAR EVEN THOUGH IT DOESN'T NEED IT HAVE WE GOT SOME STOCKS FOR YOU WE ASKED SEVERAL MONEY MANAGERS TO NAME THE MOST EXPENSIVE AND IN THEIR OPINION THE MOST OVERPRICED STOCKS ON THE MARKET TODAY RIVERBOAT CASINOS AND TRENDY STEAKHOUSE CHAINS WERE FREQUENTLY MENTIONED AMONG INDIVIDUAL STOCKS GRAND CASINOS AND SNAPPLE BEVERAGE CAME UP OFTEN THE SAME GROUPS AND STOCKS ALSO SHOWED UP PROMINENTLY ON A COMPUTERGENERATED LIST OF THE US STOCK MARKET'S PRICIEST MERCHANDISE TO CREATE THE NEARBY TABLE MARKETBASE A NEEDHAM MASS STOCKMARKETINFORMATION FIRM COMBED THROUGH MORE THAN 5000 STOCKS LOOKING FOR THOSE TRADING AT SKYHIGH MULTIPLES OF THE PAST FOUR QUARTERS' CORPORATE EARNINGS SALES AND BOOK VALUE ASSETS MINUS LIABILITIES PER SHARE MANY ARE FINE COMPANIES BUT PERILOUS STOCKS MONEY MANAGERS SAY INCLUSION ON THE LIST ISN'T NECESSARILY A BADGE OF SHAME BUT THESE STOCKS BEAR CLOSE WATCHING BECAUSE INVESTORS ARE COUNTING ON SUCH SPECTACULAR EARNINGS GAINS TYPICALLY PEOPLE OVERPAY FOR NEW TECHNOLOGY OR BREATHTAKING EARNINGS GROWTH SAYS SCOTT BLACK PRESIDENT OF DELPHI MANAGEMENT IN BOSTON AND A DEVOTEE OF THE PENNYPINCHING VALUE INVESTMENT STYLE THEY PROJECT THE GROWTH RATES INTO PERPETUITY COMPANIES DON'T GROW IN A STRAIGHT LINE AT 35 TO 40 HOW SOON PEOPLE FORGET THE AMGENS AND BORLAND INTERNATIONALS AND US SURGICALS OF THE WORLD THOSE WERE REDHOT STOCKS A YEAR OR TWO AGO THEY STILL HAVE GOOD PRODUCTS AND MAY STILL HAVE GOOD GROWTH PROSPECTS BUT THEIR STOCKS GOT BLOWN AWAY MR BLACK OBSERVES ONCE A STOCK ATTRACTS A MANIC FOLLOWING MERELY GOOD CORPORATE PERFORMANCE WON'T SUSTAIN IT FOLLOWERS DEMAND THAT THE STOCK KEEP GROWING AT AN OUTLANDISH PACE THESE ARE WHAT I CALL CULT STOCKS SAYS ELAINE HAHN PRESIDENT OF HAHN CAPITAL MANAGEMENT IN SAN FRANCISCO IT USED TO TAKE SEVERAL YEARS FOR A STOCK TO BECOME RIDICULOUSLY OVERVALUED SHE SAYS BUT TODAY STOCKS TEND TO GET MORE OVERVALUED MORE QUICKLY BECAUSE SO MANY MANAGERS ARE CHASING THESE STOCKS UP THAT'S BECAUSE WE'VE HAD A HUGE PROLIFERATION OF MUTUAL FUNDS IN THE PAST DECADE ACCORDING TO JOHN BOWEN A CORONADO CALIF INVESTMENT MANAGER A LOT OF INEXPERIENCED MANAGERS FEEL A NEED TO INVEST THE FLOOD OF MONEY THEY'RE GETTING IN TO MANY MANAGERS CASINO STOCKS PARTICULARLY SMALL ONES THAT SPECIALIZE IN RIVERBOAT GAMBLING OR GAMBLING ON INDIAN RESERVATIONS ARE PERFECT SYMBOLS OF THE MOST OVERHEATED SEGMENT OF THE MARKET THE STOCKS' FANS RIGHTLY NOTE THAT LEGALIZED GAMBLING IS SPREADING LIKE WILDFIRE GRANTED SAYS G KENNETH HEEBNER A WELLKNOWN MONEY MANAGER WITH CAPITAL GROWTH MANAGEMENT IN BOSTON BY 1995 WE'LL HAVE DE FACTO LEGALIZED GAMBLING IN AMERICA BUT THAT DOESN'T MEAN HE LIKES THE STOCKS FAR FROM IT THE FIRST GUY TO OPEN UP A GAS STATION IN AN AREA DOES AN INCREDIBLE BUSINESS SAYS MR HEEBNER BUT ONCE THERE ARE FOUR GAS STATIONS ON A CORNER PROFITS FOR ALL FOUR ARE LIKELY TO DETERIORATE IT'S THE SAME WITH GAMBLING HE SAYS THERE ARE GOING TO BE TOO MANY CASINOS WITHIN A YEAR I THINK YOU'RE GOING TO SEE A MELTDOWN OF THE PROFIT MARGINS IN THE GAMING INDUSTRY AMONG THE COMPANIES MR HEEBNER EXPECTS TO BE HURT ARE GRAND CASINOS PRESIDENT RIVERBOAT CASINOS CASINO MAGIC AND BOOMTOWN BUT HE SAYS HE BELIEVES EVEN THE INDUSTRY'S MORE ESTABLISHED PLAYERS SUCH AS MGM GRAND CIRCUS CIRCUS ENTERPRISES AND MIRAGE RESORTS WILL SUFFER THEY HAVE ALL PLANNED VERY LARGE EXPANSIONS BEFORE THERE WAS CASINO METASTASIS HE SAYS YESTERDAY CASINO STOCKS GOT BANGED UP AS SOME WALL STREET ANALYSTS STARTED TO WORRY ABOUT THE VERY CONCERNS MR HEEBNER CITES GRAND CASINOS FOR EXAMPLE FELL 3 1/8 TO 43 3/4 PRESIDENT RIVERBOAT CASINOS DROPPED 3 7/8 TO 42 7/8 MS HAHN AGREES THAT PEOPLE HAVE GONE OFF THE DEEP END ON CASINO STOCKS ESPECIALLY BECAUSE SHE THINKS A TAX BOOST MIGHT EMPTY PEOPLE'S WALLETS BUT SHE'S EQUALLY ASTOUNDED BY THE PRICE OF STARBUCKS A SELLER OF GOURMET COFFEES WHEN STARBUCKS FIRST STARTED OUT EVERYONE THOUGHT THE SPECIALTY COFFEE BUSINESS WAS UNIQUE MS HAHN SAYS BUT THE FACT OF THE MATTER IS THERE ARE ABSOLUTELY NO BARRIERS TO ENTRY IN THIS BUSINESS IN MY NEIGHBORHOOD ALONE THERE ARE AT LEAST THREE GOURMET COFFEE SHOPS NOW MS HAHN IS ALSO SKEPTICAL ABOUT ELECTRONIC ARTS A BENEFICIARY OF INVESTOR EXCITEMENT ABOUT INTERACTIVE VIDEO EVERYONE THINKS THIS IS A UNIQUE PRODUCT MS HAHN SAYS BUT CUTTINGEDGE TECHNOLOGY OFTEN HAS A SHELF LIFE OF ABOUT 30 MINUTES BEFORE THE NEXT BREAKTHROUGH ARRIVES EVERYBODY'S TRYING TO COME UP WITH AN INTERACTIVE SOFTWARE PROGRAM ELECTRONIC ARTS SELLS FOR ABOUT 52 TIMES THE PAST FOUR QUARTERS' EARNINGS MR BLACK PUTS SEVEN FIRMS ON HIS MOST OVERVALUED LIST SNAPPLE BUILDINGSUPPLIES RETAILER HOME DEPOT WELLFLEET COMMUNICATIONS NEWBRIDGE NETWORKS ORACLE CORP AUTOPART RETAILER AUTOZONE AND PAYCHEX A PROVIDER OF COMPUTER PAYROLL AND ACCOUNTING SERVICES HE REGARDS THE COMPANIES AS WELL RUN BUT THE STOCKS AS SIMPLY TOO EXPENSIVE IN THE SAME VEIN HE WOULDN'T BUY MICROSOFT PERHAPS THE MARKET'S MOST RESPECTED STOCK I'M GOING TO GET SHOT BY BILL GATES MICROSOFT'S CEO BUT THE FACT IS YOU SHOULDN'T PAY 12 TIMES BOOK MR BLACK SAYS OF SNAPPLE MR BLACK SCOFFS IT REALLY TAKES PROPRIETARY TECHNOLOGY TO PUT ICED TEA IN A BOTTLE HE THINKS LIPTON AND COCACOLA WILL GIVE SNAPPLE A TOUGH TIME SEVERAL MANAGERS HAVE KINDER WORDS FOR SNAPPLE AS A COMPANY BUT STILL DEPLORE WHAT THEY CONSIDER AN EXAGGERATED STOCK PRICE ONE NEW YORK MANAGER SAYS SNAPPLE HAS A GOOD ATTRACTIVE PRODUCT BUT THE FORECAST GROWTH RATE ASSUMES THAT SNAPPLE WON'T GET SQUEEZED BY BIG WELLFINANCED COMPETITORS I'M VERY DUBIOUS OF THAT WE HAVE A PRECEDENT THE RECENT FALL IN CLEARLY CANADIAN FOR SMALL ENTRANTS IN THE BOTTLEDDRINK AREA THINKING THAT THEY'VE GOT A CLEAR FIELD AHEAD OF THEM AND THEN RUNNING INTO A BRICK WALL CALIFORNIA'S MR BOWEN CHARACTERIZES THE STOCK PRICES OF SNAPPLE AND STARBUCKS AS JUST THROUGH THE ROOF HE ALSO CONSIDERS ALL AIRLINE STOCKS EXCEPT FOR SOUTHWEST AIRLINES OVERVALUED UNITED UAL DELTA AIR LINES AMERICAN AMR THOSE GUYS ARE LOSING MONEY HAND OVER FIST HE SAYS CLEARLY NO INDUSTRY HAS A MONOPOLY ON PRICEY STOCKS COMPUTER SEMICONDUCTOR AND SOFTWARE STOCKS HOLD EIGHT OF THE 20 SLOTS IN THE TABLE CROSSCOM NOVELLUS SYSTEMS GUPTA DAVIDSON & ASSOCIATES PEOPLESOFT WELLFLEET COMMUNICATIONS SYNOPSYS AND SYBASE THERE ARE THREE RESTAURANT OPERATORS LONE STAR STEAKHOUSE OUTBACK STEAKHOUSE AND CHECKERS DRIVE IN RESTAURANTS EXCLUDING STARBUCKS AND THERE ARE A PAIR OF GAMBLING ISSUES GRAND CASINOS AND ARGOSY GAMING ALL BUT A FEW STOCKS ON THE LIST TRADE ON THE NASDAQ OVERTHECOUNTER MARKET AS INDICATED BY THEIR STOCK SYMBOLS OF FOUR LETTERS OR MORE THE REMAINING HALF DOZEN STOCKS REPRESENT A POLYGLOT OF INDUSTRIES FROM BEVERAGES SNAPPLE TO BIOTECH GENENTECH ROUNDING OUT THE FIELD THERE'S A FARMING CONCERN WITH INTERESTS IN OIL AND MINERALS TEJON RANCH OPTICAL STORES NATIONAL VISION ASSOCIATES CELLULAR PHONE SYSTEMS ASSOCIATED COMMUNICATIONS AND GOLD MINING NEWMONT GOLD STEVEN LEUTHOLD A MINNEAPOLIS MONEY MANAGER IS PUTTING HIS MONEY WHERE HIS MOUTH IS WITH REGARD TO OVERVALUED STOCKS HIS NEW YORK AFFILIATE LEUTHOLDWEEDEN ASSOCIATES RUN BY JOHN HOLLAND SELLS SHORT BETS AGAINST SELECTED STOCKS THAT RANK AT THE TOP OF A VULNERABILITY INDEX BESIDES VALUATION THE INDEX TAKES INTO ACCOUNT A STOCK'S RECENT PRICE TREND TRADING VOLUME INSIDER PURCHASES OR SALES EARNINGS MOMENTUM AND BALANCESHEET STRENGTH AT THE MOMENT MR LEUTHOLD SAYS THE FIVE STOCKS WITH THE WORST VULNERABILITY SCORES IN HIS SYSTEM ARE CINTAS WHICH SELLS AND RENTS UNIFORMS NEW YORK TIMES INSURER OLD REPUBLIC INTERNATIONAL INVESTMENT HOUSE SALOMON AND NEW PLAN REALTY TRUST 9306080025 930608 TAMBRANDS EXCHIEF DENIES HIS OUSTER WAS RELATED TO PERSONAL IMPROPRIETIES BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL MARTIN FC EMMETT FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF TAMBRANDS INC DENIED THAT HIS DISMISSAL LAST WEEK WAS RELATED TO ANY PERSONAL IMPROPRIETIES IN A BRIEF INTERVIEW YESTERDAY MR EMMETT SPECIFICALLY DENIED THAT HE HAD MISLED INVESTORS AND ENGAGED IN INSIDER TRADING UNEQUIVOCALLY THOSE ALLEGATIONS ARE FALSE HE SAID THOSE ALLEGATIONS WERE RAISED BY COMPANY INSIDERS AND FORMER EXECUTIVES IN A WALL STREET JOURNAL ARTICLE ABOUT MR EMMETT'S OUSTER BREAKING THE TAMBRANDS BOARD'S WEEKLONG SILENCE ABOUT THE OUSTER FLOYD HALL A TAMBRANDS DIRECTOR ALSO SAID IN AN INTERVIEW THAT THE ALLEGED IMPROPRIETIES WEREN'T DISCUSSED AT LAST TUESDAY'S BOARD MEETING MR EMMETT HE SAID WAS ASKED TO STEP DOWN FOR OPERATIONAL REASONS ALONE AT THAT BOARD MEETING MR HALL SAID THAT MR EMMETT HAD DELIVERED A 3 1/2HOUR PRESENTATION BUT THAT DIRECTORS HAD DECIDED THAT MR EMMETT'S TURNAROUND PLAN FOR THE COMPANY WAS INADEQUATE DIRECTORS SIMPLY DIDN'T AGREE IT WOULD GET US BACK ON TRACK AS RAPIDLY AS WE WANTED MR HALL SAID HE DECLINED TO GIVE DETAILS OF MR EMMETT'S PROPOSALS HOWARD B WENTZ JR THE NEW CHAIRMAN OF TAMBRANDS DIDN'T RETURN PHONE CALLS SEEKING COMMENT MR HALL REFUSED TO CONFIRM OR DENY REPORTS THAT MR EMMETT'S LAVISH SPENDING HABITS ON PERQUISITES AND FRILLS IRRITATED SOME DIRECTORS I CAN'T SAY OTHER DIRECTORS DIDN'T HAVE THEIR AGENDAS BUT IT CERTAINLY WASN'T DISCUSSED DURING THE BOARD MEETING HE SAID IN A LATER TELEPHONE INTERVIEW MR EMMETT SAID ALLEGATIONS THAT THE BOARD HAD GROWN UNHAPPY WITH HIS LAVISH SPENDING AT COMPANY EXPENSE WERE ABSOLUTELY UNTRUE HE ADDED I REGARD THESE AS MALICIOUS RUMORS I'VE SPENT THE LAST FOUR YEARS CUTTING EXPENSES ACROSS THE COMPANY I'VE ELIMINATED COMPANY CARS AND CLUB DUES AND ALSO SOLD THE COMPANY PLANE HE ALSO SUPPLIED DATA SHOWING THAT DURING HIS FOURYEAR TENURE HE SLASHED THE NUMBER OF EMPLOYEES TO 3300 FROM 4800 THESE MEASURES HOWEVER WEREN'T SUFFICIENT TO OFFSET DECLINING SALES OF THE COMPANY'S FLAGSHIP TAMPAX BRAND TAMPONS TAMBRANDS WHICH PROJECTED 15 EARNINGS GROWTH EARLIER THIS YEAR SAID LAST WEEK THAT IT EXPECTS SECONDQUARTER EARNINGS TO BE SIGNIFICANTLY BELOW THE 72 CENTS A SHARE IT EARNED A YEAR EARLIER AND SEES FULLYEAR PROFITS FALLING SHORT OF 1992'S 306 A SHARE 9306080024 930608 LOS ANGELES VOTES FOR MAYOR TODAY AFTER BRUISING BATTLE BY WOO RIORDAN BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES LOS ANGELES VOTERS TODAY WILL ELECT THEIR FIRST NEW MAYOR IN 20 YEARS AFTER A BITTER MEDIA BATTLE THAT HAS PIT THE DONOTHING POLITICIAN AGAINST THE GREEDY BUSINESSMAN IF RECENT TRENDS CONTINUE A RECORD LOW NUMBER OF VOTERS WILL TURN OUT TO ELECT EITHER DEMOCRAT MICHAEL WOO A 41YEAROLD VETERAN CITY COUNCILMAN OR REPUBLICAN RICHARD RIORDAN A 63YEAROLD MILLIONAIRE BUSINESSMAN FOR THE NONPARTISAN MAYOR'S OFFICE THE ELECTION MARKS THE END OF THE REIGN OF TOM BRADLEY THE FORMER POLICEMAN WHO TOOK OFFICE TWO DECADES AGO BACK WHEN CITY HALL WAS STILL AMONG THE CITY'S TALLEST TOWERS BY FORGING AN UNLIKELY YET FORMIDABLE COALITION OF AFRICANAMERICANS LIBERAL JEWISH VOTERS AND DOWNTOWN BUSINESS INTERESTS MR BRADLEY 75 DIDN'T ENDORSE EITHER OF HIS WOULDBE SUCCESSORS LAST YEAR'S DEVASTATING URBAN RIOTS TORE THE OLD COALITION APART AND MESSRS WOO AND RIORDAN HAVE HAD TO FIGHT HARD AND DIRTY TO FORM NEW ONES MR WOO A CHINESEAMERICAN WAS THE FIRST COUNCILMAN TO PUBLICLY DENOUNCE DARYL GATES THE FORMER POLICE CHIEF AFTER THE 1991 POLICE BEATING OF BLACK MOTORIST RODNEY KING AND AS A RESULT HAS WON CONSIDERABLE SUPPORT FROM BLACKS AND OTHER MINORITY GROUPS HE IS POPULAR WITH LIBERAL VOTERS AND HAS THE ENDORSEMENTS OF PRESIDENT CLINTON AND THE LOS ANGELES TIMES MEANTIME MR RIORDAN'S TOUGHONCRIME MESSAGE HAS PLAYED WELL WITH THE BUSINESS COMMUNITY AND WHITE SUBURBAN VOTERS IN THE CITY'S AFFLUENT WEST SIDE AND IN THE SAN FERNANDO VALLEY TO THE NORTH A RECENT LOS ANGELES TIMES POLL SHOWED MR RIORDAN LEADING MR WOO BY A HUGE MARGIN IN THE VALLEY WHICH HOLDS MORE THAN ONETHIRD OF THE CITY'S 35 MILLION RESIDENTS AND WHICH CAST 43 OF ALL VOTES IN THE APRIL PRIMARY THOUGH MR WOO HAS TRIED TO PRESENT HIMSELF AS TOUGH ON CRIME IT IS MR RIORDAN WHO HAS STRUCK A CHORD WITH SUBURBAN VOTERS WITH HIS PLAN TO ADD SOME 3000 POLICE TO THE FORCE BY DIVERTING MONEY FROM THE LOS ANGELES AIRPORT IN STARK TV ADS MR RIORDAN HAS PLAYED UP THE BLEAK CRIME STATISTICS IN MR WOO'S OWN COUNCIL DISTRICT OF HOLLYWOOD POINTING OUT THAT HE HAS BEEN INEFFECTIVE IN IMPROVING THINGS MR RIORDAN HAS WAGED A NONSTOP ADVERTISING CAMPAIGN FLOODING THE AIRWAVES WITH TELEVISION ADS AND DROPPING TONS OF DIRECTMAIL SOLICITATIONS ON VOTERS' DOORSTEPS FOR HIS PART MR WOO HAS FOCUSED ON MR RIORDAN'S ROLE AS AN INVESTOR IN MATTEL INC AND OTHER COMPANIES CLAIMING THAT THE BUSINESSMAN'S BUYOUT ACTIVITIES IN THE 1980S RESULTED IN THE LOSS OF SEVERAL HUNDRED JOBS IN A LIVELY TELEVISED DEBATE SUNDAY NIGHT MR WOO BLASTED MR RIORDAN SAYING YOU ARE THE EPITOME OF 1980S GREED IN THAT YOU'VE MADE OVER 74 MILLION THROUGH THESE LEVERAGED BUYOUTS AT THE EXPENSE OF WORKERS INDEED MR RIORDAN'S INVESTMENT OF A FEW MILLION DOLLARS OF HIS OWN MONEY IN HIS CAMPAIGN HAS TRIGGERED CHARGES HE IS TRYING TO BUY THE CAMPAIGN AT A TOTAL OF MORE THAN 4 MILLION MR RIORDAN'S CAMPAIGN HAS SPENT MORE THAN TWICE AS MUCH AS MR WOO'S IN RECENT WEEKS MR WOO HAS ALSO FOCUSED ON MR RIORDAN'S CHARACTER FOLLOWING THE DISCLOSURE THAT THE BUSINESSMAN WAS ARRESTED THREE TIMES ON ALCOHOLRELATED CHARGES TWO DECADES AGO MR RIORDAN CLAIMS MR WOO IS WAGING A GUTTER CAMPAIGN UPON HIS RETURN FROM HIS MOTHER'S FUNERAL IN NEW YORK LAST WEEK HE REPORTEDLY TOLD A CROWD AT HIS CAMPAIGN OFFICE THAT HE THANKS GOD HIS MOTHER ISN'T ALIVE TO SEE WHAT MR WOO IS DOING IN THE LAST DAYS OF THE CAMPAIGN THERE WAS NO MENTION OF THE ARRESTS IN SUNDAY'S DEBATE HOWEVER AS THE CANDIDATES NEAR THE FINISH LINE THEY APPEAR TO BE RUNNING NECKANDNECK AFTER MR RIORDAN'S CAMPAIGN APPARENTLY LOST MOMENTUM FOLLOWING THE DISCLOSURES ABOUT HIS ARRESTS BUT MANY REGISTERED VOTERS HAVE EXPRESSED DISGUST FOR BOTH CANDIDATES AND THEIR SHARPLY NEGATIVE CAMPAIGNS LEADING TO AN EXPECTED LOW TURNOUT AT THE POLLS WHICH WOULD PROBABLY HELP MR RIORDAN'S CHANCES THE TURNOUT WILL BE CRITICAL TO WOO OBSERVES MARK DICAMILLO A POLLSTER IN CALIFORNIA STATEWIDE RACES THE EARLY RETURNS ARE EXPECTED TO FAVOR MR RIORDAN REFLECTING HEAVY SUPPORT AMONG A LARGE NUMBER OF ABSENTEE VOTERS MR WOO MEANWHILE HAS WORKED HARD IN RECENT DAYS TO GET OUT THE VOTE OUR TOP PRIORITY NOW IS TO GET OUT THE MESSAGE THAT ONE VOTE DOES MAKE A DIFFERENCE A CAMPAIGN WORKER SAID YESTERDAY RHONDA RUNDLE CONTRIBUTED TO THIS ARTICLE 9306080023 930608 LAW LEGAL BEAT LAWYERS UNITE AGAINST PLAN TO SPEED SUITS BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON LAWYERS OF ALL STRIPES ARE COMING TOGETHER IN THE NAME OF A MAJOR LEGALREFORM PROPOSAL TO KILL IT TAKE BIRMINGHAM ALA LAWYERS FRANCIS HARE JR AND WILLIAM C WOOD MR HARE REPRESENTS VICTIMS AND MR WOOD ADVISES DEFENDANTS IN PERSONALINJURY CASES AND OVER THE YEARS THE TWO HAVE OPPOSED EACH OTHER IN DOZENS OF SUITS SO WHEN ONE OLD FOE CALLED THE OTHER WITH AN URGENT PLEA NOT LONG AGO IT WAS MORE THAN A LITTLE SURPRISING BILL'S GREAT PURPOSE WAS TO GET OUR HELP SAYS MR HARE THE UNIFYING FACTOR PROPOSED NEW RULES FOR TRYING LAWSUITS IN THE FEDERAL COURTS JUDGES SAY THE CHANGES SET TO BECOME LAW DEC 1 WILL CUT DOWN ON THE TIME AND EXPENSE OF LITIGATION BUT THE CHANGES ARE ALMOST UNIFORMLY OPPOSED BY LAWYERS AND HAVE BECOME A RALLYING POINT FOR THE NORMALLY FRAGMENTED BAR SUCH UNITY AMONG LAWYERS IS RARE THE LAST TIME PLAINTIFF AND DEFENSE FIRMS COOPERATED TO SUCH AN EXTENT IN ALABAMA FOR INSTANCE WAS ABOUT 15 YEARS AGO WHEN LAWYERS JOINED FORCES TO KILL A PROPOSAL TO REGULATE THEIR FEES SAID MR HARE THIS TIME THE JUDGES ARE ATTEMPTING TO STREAMLINE THE PRETRIAL FACTFINDING PROCESS KNOWN AS DISCOVERY IN WHICH PLAINTIFFS AND DEFENDANTS OBTAIN INFORMATION ABOUT THEIR RESPECTIVE CASES THROUGH DOCUMENT REQUESTS AND OTHER FORMAL MEANS IN MAJOR LAWSUITS THE PROCESS CAN DRAG ON FOR YEARS DWARFING THE TIME AND EXPENSE OF TRIAL ITSELF IT IS DEALING WITH PROBABLY THE MOST EXPENSIVE PART OF THE LEGAL SYSTEM AT LEAST ON THE CIVIL SIDE SAYS ROBERT N SAYLER A LAWYER AT COVINGTON & BURLING AND CHAIRMANELECT OF THE AMERICAN BAR ASSOCIATION'S LITIGATION SECTION THE PROPOSED CHANGES DEVELOPED BY A COMMITTEE OF THE POLICYMAKING JUDICIAL CONFERENCE OF THE US WOULD REQUIRE LAWYERS TO TURN OVER TO EACH OTHER RELEVANT DOCUMENTS WITNESS NAMES AND OTHER CORE INFORMATION IN THE EARLY STAGES OF THEIR SUITS WITHOUT BEING ASKED SUCH RULES WOULD BE ENFORCED WITH COURT SANCTIONS AGAINST FIRMS THAT DIDN'T COOPERATE MEANWHILE LIMITS WOULD BE PLACED ON THE NUMBER OF DEPOSITIONS AS WELL AS ON OTHER ELEMENTS OF THE DISCOVERY PROCESS FOR THE RECORD PLAINTIFFS' LAWYERS SAY THE REASON THEY OPPOSE THE RULES IS THAT THEY DON'T TRUST DEFENDANTS TO WILLINGLY DISCLOSE EVERYTHING THEY KNOW ABOUT THEIR SUITS THEY FRET THAT LIMITS ON DEPOSITIONS AND THE LIKE WILL LEAVE THEM WORSE OFF THAN UNDER THE CURRENT SYSTEM DEFENSE LAWYERS MEANWHILE SAY THEIR PROBLEM IS THAT THERE ARE MAJOR ETHICAL ISSUES SURROUNDING ANY RULE THAT REQUIRES THEM TO VOLUNTEER INCRIMINATING INFORMATION ABOUT CLIENTS THE IDEA IS TOTALLY INCONSISTENT WITH THE ADVERSARY PROCESS SAYS ALFRED W CORTESE A WASHINGTON LAWYER WITH KIRKLAND & ELLIS AND A LEADER OF THE DEFENSEORIENTED LAWYERS FOR CIVIL JUSTICE WHICH IS ORGANIZING MUCH OF THE OPPOSITION TO THE RULES SOME JUDGES HAVE YET A THIRD EXPLANATION FOR WHY LAWYERS FIND THE APPROACH SO DISTASTEFUL IT THREATENS TO REDUCE THEIR INCOME THAT IS THE MOST SUBSTANTIAL REASON SAYS WILLIAM SCHWARZER DIRECTOR OF THE FEDERAL JUDICIAL CENTER THE FEDERAL COURTS' RESEARCH ARM THE REASON LESS DOCUMENT WORK AND FEWER PRETRIAL PROCEDURAL DISPUTES MIGHT TRANSLATE INTO SHORTER CASES AND FEWER BILLABLE HOURS WHEN THE NEW RULES WERE FIRST PROPOSED TWO YEARS AGO THE COURTS' ADMINISTRATIVE OFFICE RECEIVED HUNDREDS OF COMMENTS FROM LAWYERS AND BAR GROUPS OPPOSING THE CHANGES NOW THE BATTLE HAS TAKEN A NEW TURN WITH SOME ODD ALLIANCES AMONG HISTORIC RIVALS IN FEBRUARY PUBLIC CITIZEN LITIGATION GROUP A PUBLIC INTEREST FIRM FOUNDED BY CONSUMER ADVOCATE RALPH NADER JOINED A BRIEF URGING THE SUPREME COURT TO POSTPONE THE RULES AMONG OTHERS APPEARING ON THE BRIEF THE CHAMBER OF COMMERCE OF THE US AND MR CORTESE'S LAWYERS FOR CIVIL JUSTICE WHOSE FINANCIAL SUPPORTERS INCLUDE EXXON CORP AND GENERAL MOTORS CORP THE COURT IGNORED THE ADVICE BUT THE JUSTICES GAVE THE PROPOSED RULES A HALFHEARTED ENDORSEMENT IN FORWARDING THEM TO CONGRESS FOR CONSIDERATION IN APRIL THREE JUSTICES IN DISSENT CONDEMNED THE RULES AS POTENTIALLY DISASTROUS DAVID VLADECK A LAWYER FOR PUBLIC CITIZEN DESCRIBES THE JOINT VENTURE AMONG THE LEGAL GROUPS AS A CALCULATED GESTURE ON BOTH SIDES AIMED AT SHOWING THE COURT THE BREADTH OF DISENCHANTMENT AMONG PRACTICING ATTORNEYS THERE'S A COMMON BOND BUT EVERYBODY IS IN IT FOR THEMSELVES HE ADDS NOTING THE DIFFERENT REASONS WHY GROUPS OPPOSE THE CHANGES MR HARE THE ALABAMA LAWYER SAYS MR WOOD WAS CALLING TO GET PERMISSION TO USE HIS NAME IN CONNECTION WITH POSSIBLY LOBBYING ALABAMA SEN HOWELL HEFLIN CHAIRMAN OF A KEY SENATE JUDICIARY COMMITTEE SUBCOMMITTEE THE SENATOR AND MR HARE USED TO TRY CASES TOGETHER MR HARE ALSO SAYS MR WOOD ASKED IF HE COULD USE HIS INFLUENCE TO SOLICIT SUPPORT AMONG OTHER PLAINTIFFS' TRIAL LAWYERS PRINCIPALLY THE ASSOCIATION OF TRIAL LAWYERS OF AMERICA SO FAR WE COULD DELIVER THE FIRST AND ONLY ATTEMPT THE SECOND SAYS MR HARE ATLA THE BIGGEST LAWYER LOBBYING GROUP OPPOSED AN EARLY VERSION OF THE RULES BUT SO FAR HAS TAKEN NO POSITION ON THE LATEST PROPOSALS MR WOOD SAYS HE WAS IN TOUCH WITH MR HARE SIMPLY BECAUSE OF OUR MUTUAL CONCERNS ABOUT THE DISCLOSURE PROCESS WE INTEND TO MOUNT AN EFFORT TO MAKE ALL THE RIGHT POINTS IN A RESPECTFUL WAY AND DO WHAT WE CAN TO URGE CONGRESS NOT TO SIMPLY DO WHAT THEY DO BEST WHICH IS NOTHING SAYS SAMUEL B WITT III A WINSTONSALEM NC LAWYER WHO HEADS UP THE COMMITTEE ON PROCEDURAL REFORM FOR THE LAWYERS FOR CIVIL JUSTICE THE NEW RULES BECOME LAW UNLESS CONGRESS ACTS BEFORE THE DEC 1 EFFECTIVE DATE SUCH EFFORTS ARE MAKING INROADS A HOUSE JUDICIARY COMMITTEE JUDICIAL ADMINISTRATION SUBCOMMITTEE RECENTLY AGREED TO HOLD A HEARING ON THE RULES NEXT WEDNESDAY IN THE PAST LAWMAKERS HAVE GENERALLY RUBBERSTAMPED RULE CHANGES AND SO THE STEP IS CONSIDERED SIGNIFICANT MEANWHILE A SPOKESMAN FOR SENATE JUDICIARY COMMITTEE CHAIRMAN JOSEPH BIDEN WHO SPONSORED A MAJOR CIVILJUSTICE REFORM LAW JUST THREE YEARS AGO SAYS THERE IS NO FIRM POSITION YET SOME PEOPLE SAY THE BROADBASED OPPOSITION MAY BE DIFFICULT TO IGNORE PROPONENTS OF CHANGE HOWEVER INTERPRET THE RESISTANCE IN A DIFFERENT WAY I AM COMFORTED BY A RULE THAT IS OPPOSED BY THE PLAINTIFFS' AS WELL AS THE DEFENDANTS' SIDE SAYS JUDGE SCHWARZER THE JUDICIAL CENTER CHIEF THAT SUGGESTS TO ME THAT THERE MUST BE SOMETHING TO IT WHO'S NEWS CHARLES L KINNEY FORMERLY CHIEF FLOOR COUNSEL TO THE SENATE MAJORITY LEADER JOINED CHICAGO LAW FIRM WINSTON & STRAWN AS A PARTNER MR KINNEY WILL REPRESENT CLIENTS' LEGISLATIVE INTERESTS AND WILL PRACTICE IN THE FIRM'S WASHINGTON OFFICE BOSTON MOVE KIRKPATRICK & LOCKHART SAID FOUR NEW PARTNERS JOINED THE PITTSBURGH LAW FIRM'S BOSTON OFFICE THE ATTORNEYS ALL FROM BOSTON LAW FIRM BROWN RUDNICK FREED & GESMER ARE THOMAS F HOLT JR WHO HEADED BROWN RUDNICK'S ENVIRONMENTAL PRACTICE JAMES R KANE LOUIS C MILLER AND MARK E HADDAD AMBASE SETTLEMENT THE FORMER PRESIDENT OF AMBASE CORP MARSHALL MANLEY HAS SETTLED A LAWSUIT WITH THE MORRISTOWN NJ THRIFTHOLDING COMPANY OVER WHETHER IT WOULD COVER HIS LEGAL COSTS MR MANLEY WHO WAS PRESIDENT OF AMBASE UNTIL THE BOARD ASKED HIM TO RESIGN IN MARCH 1990 SUED THE COMPANY IN 1991 DEMANDING THAT IT CONTINUE TO DEFEND HIM IN SHAREHOLDER SUITS AND OTHER LITIGATION DETAILS OF THE SETTLEMENT WEREN'T DISCLOSED MR MANLEY PREVIOUSLY WAS A PARTNER IN THE DEFUNCT LAW FIRM FINLEY KUMBLE WAGNER HEINE UNDERBERG MANLEY MYERSON & CASEY 9306080022 930608 SURGE IN BANK PROFITS ISN'T JUST TIED TO RATES US ECONOMIST SAYS WASHINGTON THE SURGE IN 1992 BANK PROFITS REFLECTS IMPORTANT CHANGES IN THE STRUCTURE OF BANK ASSETS AND DEPOSITS AS WELL AS THE BENEFITS OF TODAY'S LOW INTEREST RATES A GOVERNMENT ECONOMIST SAID IMPROVED EARNINGS IN 1992 AREN'T SOLELY A RESULT IN CHANGES IN INTEREST RATES ACCORDING TO MARK WINER THE DIRECTOR OF BANKING RESEARCH AND STATISTICS AT THE OFFICE OF THE COMPTROLLER OF THE CURRENCY LAST YEAR'S RECORD PROFITS ARE ALSO A RESULT OF A RESTRUCTURING OF BANKS' PORTFOLIOS HE SAID IN A BRIEFING FOR REPORTERS SOME PESSIMISTS CONTEND THAT THE SURGE IN BANK PROFITS IS A SHORTTERM PHENOMENON THAT WILL DISAPPEAR WHEN INTEREST RATES BEGIN TO RISE WIPING TODAY'S LARGE SPREAD BETWEEN WHAT BANKS PAY FOR DEPOSITS AND EARN ON THEIR LOANS AND SECURITIES HOLDINGS BUT MR WINER'S ANALYSIS SUGGESTS THAT TODAY'S PROSPERITY IS BASED ON MORE THAN LOW INTEREST RATES IN STRUGGLING TO RECOVER FROM A STRING OF BAD LENDING DECISIONS PARTICULARLY AN OVERCOMMITMENT TO COMMERCIAL REAL ESTATE BANKS GOT INTO ACTIVITIES THAT LEAD TO HIGHER PROFITS HE SAID AS EXAMPLES HE SAID THAT BANKS HAVE INCREASED AS A SHARE OF THEIR TOTAL ASSETS LOANS TO FINANCE ONE TO FOURFAMILY HOUSING UNITS WHILE REDUCING MORE RISKY CONSTRUCTION AND COMMERCIAL LENDING AT THE SAME TIME HE SAID BANKS HAVE BEEN WORKING TO REDUCE THE COST OF GATHERING DEPOSITS TO FUND THEIR OPERATIONS THE INTEREST RATE SPREAD HAS BEEN INCREASING FOR 20 YEARS ALTHOUGH IT WIDENED CONSIDERABLY AFTER THE FEDERAL RESERVE STARTED DRIVING DOWN INTEREST RATES IN 1990 THE NET INTEREST MARGIN THE DIFFERENCE BETWEEN FUNDING COSTS AND EARNINGS ON ASSETS HAS RISEN TO 38 FROM 27 IN 1972 9306080021 930608 BUSINESS BRIEF ONEX CORP TORONTO COMPANY TO ISSUE SEVEN MILLION VOTING SHARES ONEX CORP SAID IT PLANS TO ISSUE SEVEN MILLION SUBORDINATE VOTING SHARES TO A COMPANY CONTROLLED BY ITS PRESIDENT AND CHIEF EXECUTIVE GERALD SCHWARTZ IN RETURN THE TORONTO HOLDING COMPANY WOULD RELINQUISH ITS RIGHTS TO ANY DIVIDENDS PAYABLE ON THE MULTIPLE VOTING SHARES OF ONEX OF WHICH IT IS THE SOLE OWNER HOLDERS OF THE MULTIPLE VOTING SHARES ARE CURRENTLY ENTITLED TO A STOCK DIVIDEND EQUIVALENT TO 20 OF THE ANNUAL INCREASE IN THE FAIR VALUE OF ONEX STOCK AND TO AN AMOUNT EQUAL TO 20 OF THE CASH DIVIDENDS PAID TO ALL CLASSES OF SHAREHOLDERS ONEX OFFICIALS SAID THE PROPOSAL WAS MADE IN THE WAKE OF COMMENTS BY SHAREHOLDERS THAT THE CURRENT DIVIDEND STRUCTURE IS COMPLEX AND HELPS TO DEPRESS THE MARKET VALUE OF ONEX'S SUBORDINATE VOTING SHARES WHICH ARE WIDELY HELD AND PUBLICLY TRADED THE ISSUE HAS BEEN RECOMMENDED BY AN INDEPENDENT BOARD COMMITTEE BUT MUST BE APPROVED BY SHAREHOLDERS AT A SPECIAL MEETING IN AUGUST 9306080020 930608 BOND TRUSTEE SETTLES EXECUTIVE LIFE CASE WITH STATE REGULATOR LOS ANGELES THE TRUSTEE FOR ONE OF EIGHT ISSUES OF MUNICIPAL BONDS BACKED BY FAILED EXECUTIVE LIFE INSURANCE CO SETTLED WITH CALIFORNIA'S INSURANCE COMMISSIONER OPENING THE WAY FOR PARTIAL INTEREST PAYMENTS ON THE BONDS THE SETTLEMENT ANNOUNCED LATE YESTERDAY IN CALIFORNIA STATE COURT HERE APPEARS TO DRIVE A WEDGE IN A GROUP OF BONDHOLDERS THAT HAS LONG OPPOSED REGULATORS' PLANS TO CLOSE THE EXECUTIVE LIFE CASE HOWEVER IT ISN'T CLEAR THAT THE ACCORD WITH TEXAS COMMERCE BANKEL PASO NA AS TRUSTEE FOR 200 MILLION OF BONDS ISSUED SEVEN YEARS AGO BY THE EL PASO TEXAS HOUSING FINANCE CORP WILL SPEED UP THE LONGDELAYED RESTRUCTURING OF EXECUTIVE LIFE A UNIT OF FIRST EXECUTIVE CORP OF LOS ANGELES THE PACT DOESN'T AFFECT OBJECTIONS BY TRUSTEES FOR THE OTHER SEVEN MUNIGICS OR GUARANTEED INVESTMENT CONTRACTS WITH FACE VALUE OF 165 BILLION NOR DOES IT MEAN INTEREST WILL BE PAID ON THOSE BONDS THE SETTLEMENT WHICH IS SUBJECT TO COURT APPROVAL CALLS FOR HOLDERS OF THE EL PASO HOUSING BONDS TO RECEIVE 316 MILLION IN INTEREST THAT HAS BEEN WITHHELD SINCE THE INSURER WAS SEIZED BY CALIFORNIA REGULATORS IN APRIL 1991 IT WAS THE NATION'S LARGEST INSURANCE FAILURE TO THAT TIME NO INTEREST HAS BEEN PAID ON THE BONDS SINCE THE SEIZURE THE PAYMENT REPRESENTS 70 CENTS ON THE DOLLAR THERE IS NO COMPOUNDING FOR DELAYED INTEREST PAYMENT THE AGREEMENT ALSO CALLS FOR IMMEDIATE PAYMENT OF 3 MILLION IN LEGAL FEES FOR TEXAS COMMERCE BANKEL PASO AS TRUSTEE FOR THE BONDHOLDERS AND LATER PAYMENTS TOTALING 625 MILLION IN FEES A FURTHER 3 MILLION WILL BE PAID TO THE TRUSTEE ON ACCOUNT OF THE BONDHOLDERS AS A SPECIAL PAYMENT BEYOND CLAIMS FOR INTEREST AND LEGAL FEES THE AGREEMENT ALSO CALLS FOR THE TRUSTEE AND THE BONDHOLDERS TO GET EQUAL TREATMENT WITH ANY LATER SETTLEMENT WITH OTHER MUNIGICS IN RETURN TEXAS COMMERCE BANKEL PASO AGREED TO CEASE ALL EFFORTS TO BLOCK THE PROPOSED SALE OF EXECUTIVE LIFE INSURANCE TO A GROUP OF FRENCH INVESTORS LEAD BY MUTUELLE ASSURANCE ARTISANALE DE FRANCE AND OTHER STEPS THAT MIGHT DELAY CLOSING THE TRANSACTION 9306080019 930608 LETTERS TO THE EDITOR STAY AWAKE IN THE COCKPIT I FAIL TO UNDERSTAND THE BIG SURPRISE AT THE AUTOPILOT FAILURES ON 747S PAGE ONE APRIL 26 IN 1943 FLYING A B24 FROM THE US TO ENGLAND VIA THE SOUTH ATLANTIC WE HAD THE SAME THING HAPPEN TWICE ONCE IN DAYLIGHT OVER BRAZIL THE SECOND TIME AT NIGHT OVER THE SOUTH ATLANTIC THE ESSENTIAL DIFFERENCE WAS THAT BOTH PILOTS AND THE NAVIGATOR WERE AWAKE AND LOOKING AT THEIR INSTRUMENT PANELS WE WERE NOT SUCH FOOLS THAT WE TRUSTED OUR LIVES TO ELECTRONIC GADGETS THE DUTIES OF THE OFFICERS ON THE FLIGHT DECK INCLUDE CONSTANT MONITORING OF THE FLIGHT INSTRUMENTS ANY ELECTRONIC OR MECHANICAL DEVICE NO MATTER HOW SOPHISTICATED CAN MALFUNCTION MOST PILOTS FLY AWARE OF MURPHY'S LAW ANYTHING THAT CAN GO WRONG WILL GO WRONG TO DIVERT BOTH PILOTS' ATTENTION FROM MONITORING THE FLIGHT PANEL IS UNFORGIVABLE AND BLAME FOR THE INCIDENTS CITED IN YOUR ARTICLE MUST BE BORNE BY THE PIC PILOT IN COMMAND NOT THE AUTOPILOT 9306080018 930608 MARKETING & MEDIA ADVERTISING SPRINT APPEARS TO TARGET AT&T WITH BE THERE NOW' CAMPAIGN BY KEVIN GOLDMAN AFTER TRYING TO STAY ABOVE THE FRAY AS RIVALS AT&T AND MCI SLUGGED IT OUT SPRINT IS SET TO AIR A NEW COMMERCIAL THAT SEEMS TO TAKE A DIRECT SLAP AT AT&T IN PREPARING SPRINT'S FIRST BROAD CORPORATE AD CAMPAIGN TO PROMOTE AN ARRAY OF SERVICES WPP GROUP'S J WALTER THOMPSON UNIT HAS COME UP WITH SIX DIFFERENT COMMERCIALS INCLUDING THREE 60SECOND SPOTS AND THREE HALFMINUTE SPOTS IN ONE ACTRESS CANDICE BERGEN TICKS OFF SOME OF THE COMPANY'S TECHNICAL ABILITIES INCLUDING VIDEO CONFERENCING YOU COULD WAIT FOR SOME OTHER PHONE COMPANY TO BRING YOU ALL OF THIS MAGIC SHE SAYS OR YOU COULD BE THERE NOW BE THERE NOW IS A NEW SLOGAN THAT SPRINT HOPES WILL BECOME PART OF THE AMERICAN LEXICON RIGHT UP THERE WITH WENDY'S WHERE'S THE BEEF ON THE SURFACE THE AD SEEMS TO TAKE A SLAM AT AMERICAN TELEPHONE & TELEGRAPH'S RECENT CAMPAIGN WHICH CONJURES UP SNAZZY FUTURISTIC SCENARIOS AND THEN PROMISES THAT AT&T WILL DELIVER ONE DAY BUT SPRINT OFFICIALS SAY THE NEW SPOT IS MERELY A MATTER OF COINCIDENCE AND LUCKY TIMING I WISH WE COULD SAY WE KNEW WHAT AT&T WAS GOING TO DO WITH ITS ADS SAYS THOMAS E WEIGMAN SPRINT'S CHIEF MARKETING OFFICER BUT THIS AD WAS IN THE PLANNING STAGES BEFORE THE AT&T ADS HIT THE AIR WHEN WE SAW THE AT&T ADS HUGE GRINS BROKE OUT BECAUSE WE KNEW WHAT A SETUP THEY WOULD BE AT&T DECLINES TO COMMENT BECAUSE ITS EXECUTIVES HAVEN'T SEEN THE SPRINT ADS THE SPRINT AD CAMPAIGN A CULMINATION OF A TWOYEAR EFFORT IS AIMED AT INFORMING CONSUMERS ABOUT KANSAS CITYBASED SPRINT WE ARE UNDERESTIMATED MR WEIGMAN SAYS WE HAVE SOME STUNNING CAPABILITIES THIS IS A MATTER OF GETTING THE WORD OUT FOR ITS PART MCI COMMUNICATIONS BEGAN AN ALLOUT ASSAULT OF ITS OWN LAST WEEK TAKING DIRECT AIM AT AT&T'S LONGRUNNING WE WANT YOU BACK EFFORT THE MCI COMMERCIALS SHOW CONSUMERS BEING INCREASINGLY ANNOYED AT A BARRAGE OF SPOTS FROM AN UNNAMED COMPANY CLEARLY AT&T ASKING CUSTOMERS TO COME BACK ONE CUSTOMER SHOOTS A TV SET ANOTHER VISITS A PSYCHIATRIST AN AT&T SPOKESWOMAN SAID MCI LOOKS LIKE IT'S TRYING TO PROVE SOMETHING TO ITS OWN CUSTOMERS THIS APPEARS TO BE A DESPERATE PLAY DESIGNED TO HOLD CUSTOMERS AS WE SEE MANY NEW ONES MOVING TO AT&T BOTH SPRINT AND MCI ARE TRYING TO CHIP AWAY AT AT&T'S LEADERSHIP IN THE 55 BILLIONAYEAR MARKET FOR DOMESTIC LONGDISTANCE SERVICE BUT THE COMMERCIALS COULD BACKFIRE EXPERTS SAY IF THE PUBLIC TIRES OF THE SNIPING AND BRAGGING AND COMES TO SEE IT AS SELFSERVING THE INCREASINGLY SHRILL TONE OF THE LONGDISTANCE ADS DOESN'T HELP GET THE RIGHT MESSAGE ACROSS SAYS DONALD PAYNE EXECUTIVE VICE PRESIDENT AT CONSULTING FIRM OXTOBYSMITH HOW COULD IT NOT HURT HE ASKS YOU CANNOT DISPARAGE EACH OTHER'S PRODUCTS AND COME OUT CLEAN EVEN SPRINT HAS ADDRESSED THE CONCERN IN EARLIER NEWSPAPER ADS ONE SPRINT PRINT AD ASKED HOW COME AT&T AND MCI KEEP SAYING THOSE NASTY THINGS ABOUT EACH OTHER WHO CARES AS FAR AS WE'RE CONCERNED LIFE IS JUST TOO SHORT TO WASTE BICKERING WITH THE COMPETITION SO RATHER THAN GETTING DOWN IN THE PROVERBIAL MUD WITH THOSE TWO OTHER LONGDISTANCE COMPANIES WE THOUGHT IT BEST TO TALK TO YOU NEW SPRINT PRINT ADS WHICH ALSO BEGIN APPEARING TODAY CLEARLY TARGET THE INSTANTGRATIFICATION GENERATION ONE HEADLINE SAYS WILL YOU BE THERE WAITING OR BE THERE NOW AND ENDS WITH TAG LINE WITH SPRINT YOU DIDN'T HAVE TO WAIT SPRINT WILL SPEND MORE THAN 30 MILLION ON THE CAMPAIGN BY THE END OF THE YEAR IN ADDITION TO THE APPROXIMATELY 90 MILLION IT SPENDS ANNUALLY ON ADVERTISING THE ADS FEATURE A BOUNCY POP SONG WITH BUBBLEGUM LYRICS THIS IS YOUR LIFE THIS IS YOUR WORLD THIS IS YOUR CHANCE YOU GOT TO BE THERE NOW BE THERE NOW THE ADS SAYS JORGE L RODRIGUEZ SPRINT'S VICE PRESIDENT OF ADVERTISING AND MARKETING AREN'T MEANT TO BE SNIDE OR SNIPING HE CALLS THEM AGGRESSIVE THE ADS ARE EMPOWERING TO CONSUMERS ONE AD SHOWS A FATHER/EXECUTIVE CONDUCTING A LUNCHEON MEETING WITH COLLEAGUES IN INDONESIA WHILE HE REMAINS IN PEORIA BAILING OUT IN TIME TO CATCH HIS KID'S GYM MEET ANOTHER SHOWS A WOMAN EXECUTIVE TRAPPED IN TRAFFIC STILL CONDUCTING BUSINESS ON A FACSIMILE MACHINE IN HER CAR SPRINT EXECUTIVES CONCEDE ITS RIVALS COULD OFFER THESE SERVICES BUT CONTEND OF COURSE THAT ITS TECHNOLOGY IS SUPERIOR SPRINT REVIEWED ABOUT 16 PIECES OF CREATIVE WORK BY J WALTER THOMPSON BEFORE SETTLING ON WHAT IT SEES AS A GENTLE APPROACH LED BY MS BERGEN WHO PORTRAYS THE COMBATIVE TV NEWSWOMAN MURPHY BROWN ON THE CBS SERIES OF THE SAME NAME IT'S A VERY CONFUSING TIME FOR THE TELEPHONE CONSUMER SAYS MR WEIGMAN AND WE'RE JUST TRYING TO MAKE SURE WE'RE SEEN AND MAKE OUR MESSAGE EASIER TO UNDERSTAND MS BERGEN HAS STARRED IN SPRINT'S REGULAR AD CAMPAIGN FOR TWO YEARS SHE RANKS NO 4 ON A LIST OF THE MOST PERSUASIVE ADVERTISING SPOKESPERSONS COMPILED BY VIDEO STORYBOARD TESTS BEHIND RAY CHARLES BILL COSBY AND CINDY CRAWFORD THE ACTRESS ALSO WILL APPEAR IN NEW SPRINT CORPORATE SPOTS THAT WILL BE READY BY NEXT FALL THE COMPANY SAYS SPOTLIGHTING SPRINT TECHNOLOGY AND HOW CONSUMERS CAN GET IT NOW REVIEWS SHONEY'S NASHVILLE TENN SAID IT'S REVIEWING CREATIVE WORK FROM ABOUT 15 AGENCIES JEFF SOWELL VICE PRESIDENT OF MARKETING SAID THE CREATIVE WINDOWSHOPPING DIDN'T NECESSARILY MEAN THAT THE RESTAURANT CHAIN WANTED TO END ITS RELATIONSHIP WITH THE ATLANTA OPERATIONS OF WPP GROUP'S OGILVY & MATHER SHONEY'S BILLINGS ARE ESTIMATED AT ABOUT 15 MILLION JOCKEY INTERNATIONAL KENOSHA WIS SAID IT HASN'T YET MADE A DECISION IN ITS AGENCY SEARCH ADWEEK HAD REPORTED THAT WIEDEN & KENNEDY WON THE ACCOUNT BUT JOCKEY SAID IT'S JUST ONE OF SEVERAL CONTENDERS JOCKEY AN APPAREL MAKER SPENT AN ESTIMATED 5 MILLION LAST YEAR THROUGH AN INHOUSE AGENCY WHO'S NEWS THE NETWORK TELEVISION ASSOCIATION THE THREE MAJOR TV NETWORKS' INDUSTRY GROUP NAMED MARCELLA ROSEN PRESIDENT AND CHIEF EXECUTIVE OFFICER MS ROSEN 58 YEARS OLD HAD BEEN EXECUTIVE VICE PRESIDENT AND MANAGING DIRECTOR OF MEDIA SERVICES AT NEW YORKBASED AYER SUCCEEDING MS ROSEN AT AYER IS BETH GORDON 41 WHO HAD PREVIOUSLY OVERSEEN MEDIA FOR THE AGENCY'S NEW YORK CLIENTS 9306080017 930608 LETTERS TO THE EDITOR READ THESE LETTERS GET AN A+ YOUR APRIL 27 ARTICLE TROPHY TRANSCRIPT HUNTERS ARE FINDING PROFESSORS HAVE BECOME AN EASY MARK DESCRIBES A MAJOR DILEMMA IN CONTEMPORARY ACADEMIA YOU WRITE PRINCIPALLY FROM THE EVIDENCE FROM MAJOR UNIVERSITIES BUT GRADE INFLATION PERMEATES OTHER ARENAS OF ACADEMIA I HAVE TAUGHT IN BOTH UNDERGRADUATE AND GRADUATE PROGRAMS FOR MORE THAN 15 YEARS AND I HAVE OBSERVED THE SAME DILEMMA BUT WHY I DID NOT TEACH IN PRESTIGIOUS INSTITUTIONS WITH ONE PARTTIME EXCEPTION THE PRIMARY EXPLANATION IS THE MARKET FACTOR WHEN THE INSTITUTION NEEDS TO RECRUIT AND RETAIN STUDENTS TO SURVIVE A BUYER'S MARKET INTELLECTUAL STANDARDS ARE AT RISK OF BEING COMPROMISED ALAS THE MAVERICK PROFESSOR TOILING TO SALVAGE COMPETENT ACADEMIC STANDARDS MAY FIND STUDENTS WHO VOTE WITH THEIR FEET AND AVOID HIS CLASSES OR OPT FOR LESS DEMANDING TEACHERS LOWER ENROLLMENTS CAN READILY QUALIFY THAT PROFESSOR FOR A NONRENEWAL OF CONTRACT REASONS CAN BE FOUND TO BLAME HIM RATHER THAN THE RECALCITRANT SYSTEM SQUELCHING INTELLECTUAL INTEGRITY THE PROFESSOR IS LABELED AS DISGRUNTLED OR AS A POOR TEACHER WHO CANNOT RELATE TO OUR KIND OF STUDENT ADMINISTRATORS MAY OFFER THE FOLLOWING APOLOGIA FOR STUDENTS WE ADMITTED THEM SO THEY ARE QUALIFIED TO BE HERE THEREFORE THEY GRADUATE WITH HIGH GRADE AVERAGES OR FROM ANOTHER PERSPECTIVE THEY PAID THE PRICE SO GIVE THEM THEIR PLEASURE SO THE PROFESSOR IS EXPELLED RATHER THAN THE STUDENT HE IS THE VICTIM OF INTELLECTUAL FRAUD BUT IS BLAMED FOR HIS PLIGHT ARE THERE TIMES WHEN ACADEMIA PROSTITUTES ITSELF OR IS THIS TERM TOO STRONG IN THIS CONTEXT IS THE OVERSUPPLY OF EXCEPTIONAL GRADES REALLY A SURPRISE MARKET MECHANISMS APPLY AS READILY TO ACADEMIA AS TO SALES OPERATIONS EVERY EFFECT HAS ITS OWN CAUSE MOST COLLEGE TEACHERS LOOK FOR GOOD STUDENT EVALUATIONS THERE COULD BE MANY REASONS FOR THIS FOR EXAMPLE PROMOTION AND TENURE SALARY RAISES OR EGO SATISFACTION WHEN WE ASKED OUR STUDENTS IN DIFFERENT CLASSES WHAT IS IMPORTANT TO THEM THE KNOWLEDGE OF THE SUBJECT OR THE GRADES IN THE SUBJECTS 90 OPENLY VOTED BY RAISING THEIR HANDS THAT GRADES WERE MOST IMPORTANT AFTER ALL THEY MUST GET THEIR DEGREES AND JOBS FIRST THERE IS AMPLE TIME TO GET KNOWLEDGE LATER CONSEQUENTLY GENEROUS GRADES BRING IN GOOD EVALUATIONS COLLEGE TEACHERS ARE GETTING SMARTER AND SMARTER THEY HAVE FIGURED THIS OUT NO WONDER THERE IS GRADE INFLATION ONLY A MINORITY OF TEACHERS WHO ARE TOO THEORETICAL OR IMPRACTICAL WOULD STRUGGLE TO ACHIEVE HIGHER STANDARDS IN SANSKRIT THERE IS A SAYING AS ARE THE SUBJECTS SO ARE THE KINGS AS A MEMBER OF THE TEACHING FACULTY AT STANFORD UNIVERSITY AND A GRADUATE OF EVERGREEN STATE COLLEGE WHICH USES EVALUATIONS INSTEAD OF LETTER GRADES I FEEL THAT YOUR ARTICLE FALLS INTO THE SAME TRAP AS THE SOCALLED TROPHY HUNTERS THAT TRAP IS A FOCUS ON LETTER GRADES RATHER THAN THE MASTERY OF KNOWLEDGE PROFESSORS PLAY TWO ROLES AS TEACHERS AND AS GATEKEEPERS AS TEACHERS WE AID STUDENTS AT MASTERING THE MATERIAL WE RANK THEM AND USE GRADES TO LET THEM KNOW HOW WE ASSESS THEIR UNDERSTANDING OF THE SUBJECT AS GATEKEEPERS WE PASS JUDGMENT ON STUDENTS OFTEN DETERMINING THEIR FUTURE OPTIONS AS TEACHERS IT DOES NOT MATTER IF WE USE A A B+ AND B OR A B C AND D AS GATEKEEPERS WE ARE ACCUSED OF BEING GRADE INFLATORS IF WE USE THE FORMER SET OF GRADES AND NOT THE LATTER UNFORTUNATELY OUR STUDENTS AND THEIR EMPLOYERS HAVE BEEN SOCIALIZED TO BELIEVE THAT THEIR MASTERY OF A SUBJECT CAN BE ADEQUATELY SUMMARIZED BY A SINGLE MEASURE THE FINAL GRADE WHILE IT CANNOT STUDENTS CONTINUE TO FOCUS ON THEIR GRADE AND NOT ON THE MATERIAL AS REFLECTED IN THE QUESTION IS THAT GOING TO BE ON THE EXAM EMPLOYERS AND GRADUATE SCHOOLS CONTINUE TO THINK THEY CAN USE THE GRADEPOINT AVERAGE TO COMPARE GRADUATES OF ONE SCHOOL WITH ANOTHER THEY SHOULD NOT INSTEAD THEY SHOULD ASK FOR WRITING SAMPLES OR OTHER MEASURES MORE CLOSELY RELATED TO THE JOB OR THE PROGRAM OF STUDY 9306080016 930608 COMMODITIES CRUDE OIL PRICES DROP SHARPLY AMID STRUGGLE TO KEEP TIGHT LID ON OPEC PRODUCTION QUOTAS BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON CRUDE OIL PRICES FELL SHARPLY OVER SKEPTICISM THAT OPEC WILL BE ABLE TO ALLOCATE INCREASED PRODUCTION TO SOME MEMBERS WITHOUT TIPPING THE WORLD'S SUPPLYDEMAND BALANCE AT A MEETING THAT FORMALLY BEGINS TODAY IN GENEVA MEMBERS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES WILL ATTEMPT THE DELICATE TASK OF IRONING OUT THE GROUP'S THIRDQUARTER PRODUCTION LEVELS WHILE OPEC HEAVYWEIGHT SAUDI ARABIA AND OTHERS HAVE CALLED FOR KEEPING THE CEILING AS CLOSE AS POSSIBLE TO THE CURRENT 236 MILLION BARRELS A DAY THE GROUP WILL HAVE TO FIGHT OFF DEMANDS FROM SEVERAL COUNTRIES NOTABLY KUWAIT TO RAISE THEIR LIMITS IF THOSE QUOTAS ARE RAISED OPEC MUST DECIDE WHETHER TO TAKE THOSE INCREASES FROM ANOTHER COUNTRY'S QUOTA OR TO RAISE THE OUTPUT OF THE ENTIRE GROUP FURTHER INCREASES IN OPEC PRODUCTION WOULD BE A NEGATIVE FACTOR SAID ROBERT BOSLEGO PRESIDENT OF BOSLEGO CORP AN OILMARKET ANALYST CONCERN THAT'S WHY WE'VE SEEN THE MARKET GO DOWN IN ADVANCE OF THE OPEC MEETING MR BOSLEGO SAID THAT TRADERS EXPECT OPEC TO REACH AN AGREEMENT THAT WOULD ALLOW KUWAIT TO RAISE ITS OUTPUT BY ABOUT 200000 BARRELS A DAY ANY MORE WOULD BE BEARISH FOR OIL PRICES AND ANY LESS OR EVEN THE EXPECTED OUTCOME COULD BE SLIGHTLY BULLISH TRADERS SAID THE DROP IN CRUDE PRICES IN RECENT DAYS WORRIES OPEC MEMBERS WHILE TRADERS ARE LOOKING AHEAD TO THIRDQUARTER CEILINGS THEY ALSO ARE EXAMINING CURRENT INVENTORY LEVELS INDEED THEY SAID PRICES HAVE DROPPED BECAUSE WORLDWIDE INVENTORIES ARE BRIMMING WITH CRUDE OIL AND PETROLEUM PRODUCTS FOR INSTANCE THE AMERICAN PETROLEUM INSTITUTE HAS REPORTED THAT GASOLINE INVENTORIES IN THE US ROSE MORE THAN A WHOPPING NINE MILLION BARRELS IN THE LATEST WEEK IN TRADING ON THE NEW YORK MERC YESTERDAY GASOLINE PRICES FELL MORE SHARPLY THAN CRUDE THE JULY CONTRACT ENDED AT 5612 CENTS A GALLON DOWN 078 CENT MANY TRADERS EXPECT FURTHER WEAKNESS IN GASOLINE PRICES AS REFINERIES CONTINUE TO RUN AT VERY HIGH CAPACITY MR BOSLEGO SAID HE EXPECTS GASOLINE INVENTORIES TO RISE MORE IN COMING WEEKS AS US IMPORTS OF PETROLEUM PRODUCTS RISE AT THE OPEC MEETING ANY INCREASE IN KUWAIT'S PRODUCTION QUOTA IS BOUND TO CAUSE DEMAND BY OTHERS INCLUDING IRAN AND NIGERIA FOR HIGHER ALLOCATIONS TOO PREVIOUSLY KUWAIT AGREED TO CUT ITS OUTPUT TO 16 MILLION BARRELS A DAY ON THE PROMISE IT WOULD BE ALLOWED TO SELL TWO MILLION BARRELS IN THE THIRD QUARTER IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS GOLD FUTURES PRICES SLIPPED IN LIGHT VOLUME WITH THE ACTIVE AUGUST CONTRACT SETTLING 280 LOWER AT 37570 AN OUNCE ALL PRECIOUS METALS CAME IN A LITTLE SOFTER AFTER REPORTS FROM LONDON OF A BIT OF SELLING OF SILVER BY MIDDLE EAST INTERESTS SAID GEORGE MILLINGSTANLEY AN ANALYST WITH SHEARSON LEHMAN BROTHERS HE SAID THAT GOLD FOR AUGUST DELIVERY APPEARED TO FIND GOOD BUYING SUPPORT AT 37350 AN OUNCE ON NEW YORK'S COMMODITY EXCHANGE THE METAL TRADED IN A RANGE BETWEEN 37680 AND 37360 MONDAY WITH LOW VOLUME OF AROUND 22000 CONTRACTS THE MARKET SEEMED A BIT DIRECTIONLESS JUST LOCALS PUSHING IT AROUND A LITTLE MR MILLINGSTANLEY SAID A LOCAL IS A COMMODITY FLOOR TRADER WHO EXECUTES TRANSACTIONS FOR HIS OR HER OWN ACCOUNT SOME TRADERS NOTED THAT THE WEAKER TONE IN THE COMMODITY RESEARCH BUREAU'S INDEX OF 21 FUTURES CONTRACT A WIDELY FOLLOWED GAUGE OF FUTURE INFLATION TRENDS IS EATING INTO SUPPORT FOR GOLD A TRADITIONAL HEDGE AGAINST INFLATION SILVER FOR JULY DELIVERY SETTLED 3 CENTS LOWER AT 4415 AN OUNCE ON THE COMEX THE ACTIVE JULY PLATINUM CONTRACT SETTLED AT 38630 ON THE NEW YORK MERCANTILE EXCHANGE OFF 420 WHILE PALLADIUM FOR SEPTEMBER DELIVERY CLOSED AT 12375 UP 35 CENTS AT THE NEW YORK MERC SUGAR FUTURES REMAINED VOLATILE FOLLOWING REPORTS THAT CUBA WILL SUSPEND SHIPMENTS TO FOREIGN CLIENTS FOR THE REST OF THIS MONTH AND POSSIBLY LONGER THE ACTIVE JULY CONTRACT FELL 001 CENT TO 1095 CENTS A POUND ON THE COFFEE SUGAR & COCOA EXCHANGE THE CONTRACT HAD TRADED AS LOW AS 1077 CENTS EARLY IN THE SESSION TRADERS SAID STEPHEN PLATT A SENIOR COMMODITY ANALYST WITH DEAN WITTER IN CHICAGO OBSERVED I THINK THE GENERAL TREND IS UP WE'RE LOOKING AT A RATHER TIGHT SUPPLY SITUATION MR PLATT SAID THE DISASTROUS HARVEST IN CUBA FOR 199293 BODES POORLY FOR NEXT YEAR FOR THE WORLD'S LARGEST EXPORTER OF RAW SUGAR IT'S NOT JUST WEATHER DAMAGE TO THE CROP HE SAID IT'S PROBLEMS WITH INFRASTRUCTURE AND THE ONLY WAY TO IMPROVE INFRASTRUCTURE IS TO POUR MONEY INTO IT BUT CUBA WON'T HAVE THE HARD CURRENCY EARNINGS FROM SUGAR TO DO THAT GRAINS & SOYBEANS PRICES OF CORN FUTURES CONTRACTS ROSE AFTER RAINSTORMS FURTHER DELAYED PLANTING IN IOWA AND ILLINOIS IN TRADING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR JULY DELIVERY ROSE 275 CENTS A BUSHEL TO SETTLE AT 222 A BUSHEL ACCORDING TO SOME ANALYSTS THE STORMS MIGHT MARK THE END OF THE MIDWEST CORNPLANTING SEASON IF FIELDS REMAIN TOO MUDDY FOR FARM EQUIPMENT FOR MORE THAN A FEW DAYS CORN PLANTED AFTER THEN WON'T HAVE ENOUGH TIME TO MATURE BEFORE THE FIRST HARD FREEZE OF AUTUMN AFTER THE CLOSE OF TRADING YESTERDAY SEVERAL MIDWEST STATES RELEASED THEIR WEEKLY PLANTING PROGRESS REPORTS FARMERS IN THE 17 MAJOR CORNGROWING STATES PLANTED 93 OF THE CROP BY SUNDAY COMPARED WITH A FIVEYEAR AVERAGE OF 96 PLANTING IS LAGGING SIGNIFICANTLY IN IOWA HOWEVER WHERE FARMERS HAVE SOWN 88 OF THEIR PLANNED CORN ACREAGE COMPARED WITH A FIVEYEAR AVERAGE OF 97 FARMERS IN THE 19 MAJOR SOYBEAN STATES HAVE PLANTED 59 OF THE CROP COMPARED WITH A FIVEYEAR AVERAGE OF 73 SOYBEAN PLANTING NORMALLY CONTINUES INTO JUNE THE MAJOR CORNGROWING STATES ALSO RELEASED THEIR FIRST SURVEY OF THE CROP'S CONDITION ONLY 28 OF IOWA FARMERS SURVEYED SAID THAT RECENTLY PLANTED CORN IN THEIR AREA IS IN GOOD TO EXCELLENT CONDITION IOWA FARMERS DESCRIBED 59 OF THE CORN CROP IN FAIR CONDITION AND 13 OF THE CROP IN POOR TO VERY POOR CONDITION 9306080015 930608 WHAT'S NEWS WORLDWIDE THE HIGH COURT GAVE TWO VICTORIES TO ADVOCATES OF RELIGION IN PUBLIC LIFE A UNANIMOUS SUPREME COURT SAID RELIGIOUS GROUPS MAY SOMETIMES MEET AFTER HOURS ON PUBLIC SCHOOL PROPERTY THE COURT STRUCK DOWN A NEW YORK DISTRICT'S POLICY OF EXCLUDING RELIGIOUS ACTIVITIES WHILE ALLOWING OTHER MEETINGS THE JUSTICES SAID THIS TYPE OF EXCLUSION VIOLATES THE FIRST AMENDMENT FREESPEECH RIGHTS OF RELIGIOUS GROUPS IN THE SECOND ACTION THE COURT LET STAND AN APPEALS COURT RULING ALLOWING STUDENTLED PRAYERS AT PUBLIC SCHOOL GRADUATION CEREMONIES IN THREE STATES THE COURT RULING IN A MINNESOTA CASE MADE IT SOMEWHAT EASIER FOR THE GOVERNMENT TO USE AS EVIDENCE ILLEGAL DRUGS THAT POLICE FIND WHEN STOPPING AND SEARCHING DEFENDANTS WITHOUT WARRANTS HUNDREDS WERE REPORTED TO HAVE DIED IN CROATMUSLIM CLASHES IN BOSNIA HEAVY CASUALTIES WERE REPORTED IN THE CENTRAL BOSNIAN TOWN OF TRAVNIK UN MILITARY OFFICIALS SAID MUSLIMS HAD DRIVEN CROAT TROOPS OUT OF TRAVNIK OVER THE WEEKEND AND THEN YESTERDAY EXPELLED 3000 CROAT CIVILIANS THEIR HOMES WERE SAID TO HAVE BEEN BURNED OR DESTROYED A BOSNIAN SERB ARMY UNIT NEARBY SAID 1000 CROATS HAD SURRENDERED TO IT RATHER THAN TO THE MUSLIMS BOSNIA'S MUSLIMLED GOVERNMENT SAID IT WOULD COOPERATE WITH A UN PLAN TO SET UP SAFE AREAS BUT ONLY IF THESE WERE LINKED BY PROTECTED CORRIDORS FEDERAL IMMIGRATION OFFICIALS DETAINED 288 CHINESE REFUGEES IN NEW YORK TO AWAIT LEGAL ACTION THE REFUGEES JUMPED FROM THEIR CARGO SHIP AND TRIED TO SWIM ASHORE SUNDAY AFTER THE VESSEL WENT AGROUND EIGHT IMMIGRANTS DIED THE CAPTAIN AND 11 CREW MEMBERS WERE CHARGED WITH CONSPIRACY TO SMUGGLE ALIENS UKRAINE'S DEFENSE MINISTER ACCEPTED A US PROPOSAL TO PUT UKRAINEBASED NUCLEAR WARHEADS UNDER INTERNATIONAL CONTROL STILL UNRESOLVED ARE RUSSIA'S OBJECTIONS TO LETTING THE WARHEADS REMAIN IN UKRAINE GERMANY'S CHANCELLOR KOHL EXPLAINED THAT HE STAYED AWAY FROM MEMORIAL SERVICES FOR FIVE TURKS KILLED IN NEONAZI VIOLENCE BECAUSE HE DIDN'T WANT TO BE JEERED IN FRONT OF TELEVISION CAMERAS THE US IS RESUMING AID TO GUATEMALA THAT WAS SUSPENDED TWO WEEKS AGO AFTER THENPRESIDENT SERRANO SEIZED SWEEPING POWERS IN MOVING QUICKLY TO RESTORE THE AID THE US SIGNALED ITS SUPPORT FOR THE NEW PRESIDENT DE LEON CARPIO A HUMANRIGHTS ADVOCATE MEANWHILE DE LEON CARPIO FIRED THE COUNTRY'S DEFENSE MINISTER KHMER ROUGE GUERRILLAS ATTACKED PAKISTANI PEACEKEEPERS IN CAMBODIA AS A VOTE COUNT FROM LAST MONTH'S ELECTION NEARED ITS CONCLUSION TWO PAKISTANIS WERE WOUNDED IN THE ASSAULT A UN SPOKESMAN SAID A BORDER MEETING FIZZLED BETWEEN NORTH AND SOUTH KOREAN OFFICIALS AFTER PYONGYANG DECLINED TO NAME ITS DELEGATION TO TODAY'S SESSION SEOUL WANTED TO TALK ABOUT NORTH KOREA'S SUSPECTED NUCLEARARMS PROGRAM PYONGYANG OPPOSED ANY DISCUSSION OF THE TOPIC A USNORTH KOREAN MEETING IS SET FOR THURSDAY FORMER PRIME MINISTER THATCHER SAID THE GOVERNMENT LED BY HER SUCCESSOR MAJOR IS BETRAYING THE PUBLIC TRUST BY DENYING BRITISH CITIZENS A CHANCE TO VOTE ON THE MAASTRICHT TREATY THATCHER TOLD THE HOUSE OF LORDS SHE WOULD NEVER HAVE SIGNED THE EUROPEAN UNITY PACT HER ALLIES BELIEVE VOTERS WOULD REJECT IT IN A REFERENDUM THE US MILITARY IS INVESTIGATING AN INCIDENT IN WHICH ARMY SOLDIERS ALLEGEDLY TORTURED TWO SOMALIS WITH ELECTRIC SHOCKS OFFICIALS SAID THE MAY 26 INCIDENT TOOK PLACE IN A TOWN NOT FAR FROM MOGADISHU BUT DETAILS ARE UNCLEAR AND THE ALLEGED VICTIMS AREN'T AVAILABLE SOME 4200 US TROOPS ARE IN SOMALIA ITALY'S PRIME MINISTER CIAMPI SET UP AN ELECTORAL REFORM COMMISSION A DAY AFTER ITALIANS VOTED OVERWHELMINGLY AGAINST ESTABLISHMENT PARTIES AND IN FAVOR OF PROTEST AND REFORM MOVEMENTS IN SUNDAY'S MAYORAL ELECTIONS THE PANEL WILL SET THE RULES FOR NATIONAL PARLIAMENTARY ELECTIONS THE AZERI PRIME MINISTER OFFERED TO QUIT AFTER REBELS CAPTURED AZERBAIJAN'S SECONDBIGGEST CITY GYANDZHA PRESIDENT ELCIBEY WAS EXPECTED TO ACCEPT THE RESIGNATION OF PANAKH GUSEINOV WHOSE DISMISSAL WAS SOUGHT BY THE GUERRILLAS THE REBEL LEADER IS A COMMANDER DEMOTED BY THE GOVERNMENT AFTER REPEATED DEFEATS AGAINST ARMENIANS 9306080014 930608 WHO'S NEWS PRESIDENT STEPS DOWN AT POWER AUTHORITY IN NEW YORK STATE NEW YORK JOHN C BRONS RESIGNED AS PRESIDENT AND CHIEF OPERATING OFFICER OF THE NEW YORK POWER AUTHORITY A STATEOWNED SUPPLIER OF ELECTRICITY MR BRONS 55 YEARS OLD STEPPED DOWN APPARENTLY BECAUSE OF CONTINUING PROBLEMS AT THE POWER AUTHORITY'S TWO NUCLEAR POWER PLANTS WHICH PROVIDE ABOUT 25 OF THE NONPROFIT AUTHORITY'S ELECTRICITY A POWER AUTHORITY SPOKESMAN SAID THAT OVER THE PAST TWO YEARS MAINTENANCE AND OPERATING PROBLEMS HAD DEVELOPED AT THE TWO PLANTS AND WEREN'T BEING SUFFICIENTLY ADDRESSED THE FITZPATRICK PLANT IN OSWEGO ON THE LAKE ONTARIO SHORE WAS RESTARTED IN JANUARY 1993 AFTER A 13MONTH SHUTDOWN STEMMING FROM VALVE PROBLEMS THE COMPANY'S INDIAN POINT 3 PLANT IN WESTCHESTER COUNTY HAS BEEN CLOSED SINCE FEB 27 THE FACILITY RECENTLY UNDERWENT A SPECIAL INSPECTION BY THE NUCLEAR REGULATORY COMMISSION CONCERNING DECLINES IN ITS PERFORMANCE SCORES THERE WAS A MUTUAL AGREEMENT THAT A NEW DIRECTION IN MANAGEMENT WOULD BE BENEFICIAL AT THIS TIME SAID MR BRONS WHO WILL CONTINUE BRIEFLY IN AN ADVISORY CAPACITY HE WILL BE SUCCEEDED TEMPORARILY BY ROBERT G SCHOENBERGER 42 THE POWER AUTHORITY'S EXECUTIVE VICE PRESIDENT FOR FINANCE AND ADMINISTRATION THE POWER AUTHORITY SAID A NATIONWIDE SEARCH FOR A NEW PRESIDENT WILL BEGIN IMMEDIATELY WITH MR SCHOENBERGER A CANDIDATE MR BRONS'S DEPARTURE COMES AT A CRUCIAL TIME FOR THE POWER AUTHORITY WHICH LAST YEAR HAD ABOUT 13 BILLION IN REVENUE BUT WAS LEFT WITH ONLY 576 MILLION TO PLACE IN ITS RESERVES THE AUTHORITY AVERTED ITS FIRST NET OPERATING LOSS SINCE 1958 THANKS LARGELY TO DEFERRED INCOME FROM CONSTRUCTION PROJECTS 9306080013 930608 TECHNOLOGY FUJITSU TO DEVELOP PARALLELPROCESSING' LINE OF COMPUTERS TOKYO FUJITSU LTD SAID IT PLANS TO DEVELOP A NEW LINE OF PARALLELPROCESSING COMPUTERS THAT MIGHT ONE DAY REPLACE MAINFRAME COMPUTERS MUCH LIKE INTERNATIONAL BUSINESS MACHINES CORP FUJITSU DEPENDS HEAVILY ON ITS LINE OF EXPENSIVE AND HIGHLY PROFITABLE MAINFRAME COMPUTERS BUT RECENT TRENDS IN THE COMPUTER INDUSTRY IN PARTICULAR THE DOWNSIZING MOVEMENT IN WHICH USERS HAVE TURNED TO INCREASINGLY POWERFUL SMALLER COMPUTERS LIKE WORKSTATIONS AND PERSONAL COMPUTERS HAVE ERODED THE MAINFRAME MARKET PLUNGING COMPANIES LIKE FUJITSU AND IBM INTO THE RED BY ANNOUNCING ITS INTENTION TO DEVELOP PARALLELPROCESSING COMPUTERS HOWEVER FUJITSU IS TRYING TO PROVE THAT IT HAS A VISION EXTENDING BEYOND THE MAINFRAME PARALLELPROCESSING COMPUTERS WHICH USE DOZENS OR THOUSANDS OF PROCESSING CHIPS THAT SERVE AS A COMPUTER'S BRAIN INSTEAD OF A MAINFRAME'S SINGLE PROCESSOR OFFER THE POTENTIAL OF GREAT COMPUTING POWER AT LOW COST FUJITSU SAID IT INTENDS TO DEVELOP TWO TYPES OF PARALLELPROCESSING COMPUTERS ONE WOULD BE DEDICATED TO DATABASE PROCESSING FUJITSU'S SECOND TYPE OF PARALLEL PROCESSING COMPUTER WOULD BE DEDICATED TO MISSIONCRITICAL APPLICATIONS SUCH AS AIRLINE RESERVATION SYSTEMS AND FINANCIAL TRANSACTION PROCESSING NOW DONE MOSTLY ON MAINFRAMES THE COMPANY SAID BOTH LINES SHOULD BE READY IN THE NEXT THREE YEARS IT RELEASED NO PRICING INFORMATION FUJITSU ALSO SAID IT IS MAKING PROGRESS IN DEVELOPING SOFTWARE FOR PARALLEL COMPUTING THANKS LARGELY TO ITS WORK IN DEVELOPING PARALLEL SUPERCOMPUTERS FOR SCIENTIFIC AND GRAPHICSDEVELOPMENT APPLICATIONS 9306080012 930608 WHO'S NEWS SOUTHERN ELECTRONICS CORP SOUTHERN ELECTRONICS CORP TUCKER GA KEN ROBERTS WAS APPOINTED VICE PRESIDENT SALES OF THIS MICROCOMPUTERDISTRIBUTING COMPANY MR ROBERTS 46 YEARS OLD WAS SOUTHEASTERN AND LATIN AMERICAN SALES MANAGER FOR MAXTOR CORP HE SUCCEEDS 28YEAROLD MARK DIAMOND WHO WAS APPOINTED EXECUTIVE VICE PRESIDENT MARKETING CHUCK MARSH 36 WHO PREVIOUSLY SERVED AS EXECUTIVE VICE PRESIDENT PURCHASING AND MARKETING WILL NOW SERVE AS EXECUTIVE VICE PRESIDENT PURCHASING 9306080010 930608 ABREAST OF THE MARKET STOCKS SLIDE AS FRIDAY JOBS REPORT STILL HAUNTS SOME RATEWATCHERS BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCK PRICES SAGGED AS WORRIES ABOUT INTEREST RATES TOPPLED BANKING SHARES AND PROFITTAKING CLOBBERED MANY TECHNOLOGY ISSUES SHARP LOSSES IN SEVERAL INDIVIDUAL ISSUES ADDED TO THE NEGATIVE SENTIMENT COOPER TIRE & RUBBER TUMBLED 7 3/4 OR 236 TO 25 1/8 ON CONCERNS ABOUT WEAKNESS IN THE TIRE BUSINESS ADVANCED MICRO DEVICES SHED 4 1/4 OR 152 TO 23 3/4 AFTER AN ADVERSE COURT RULING THE DOW JONES INDUSTRIAL AVERAGE SKIDDED 1301 OR 037 TO 353213 DECLINING STOCKS LED ADVANCERS 1149 TO 771 BIG BOARD VOLUME TOTALED 235580000 SHARES COMPARED WITH 224240000 SHARES FRIDAY ALTHOUGH BOND PRICES ADVANCED YESTERDAY PUSHING MARKET RATES LOWER ANALYSTS SAID BANK STOCK INVESTORS ARE STILL HAUNTED BY FRIDAY'S JUMP IN RATES WHICH WAS INSPIRED BY A STRONGERTHANEXPECTED REPORT ON MAY EMPLOYMENT THAT STRONG ECONOMIC REPORT HAS STOKED FEARS THAT THE FEDERAL RESERVE BOARD WILL TIGHTEN CREDIT IF GOVERNMENT READINGS ON INFLATION DUE THIS FRIDAY AND NEXT TUESDAY SHOW CONTINUED GAINS IN PRODUCER AND CONSUMER PRICES THE FINANCIAL STOCKS ARE ACTING AS IF WE ARE ON THE BRINK OF A 100 BASIS POINT TIGHTENING SAID DAVID SHULMAN MARKET STRATEGIST AT SALOMON BROTHERS AT MOST HE SEES JUST A 1/4 PERCENTAGE POINT OR 25 BASIS POINT INCREASE IN SHORTTERM RATES IF THE FED MOVES AT ALL AMONG THE BIGGEST LOSERS YESTERDAY WERE WELLS FARGO WHICH TUMBLED 5 1/4 TO 95 3/4 BANK OF NEW YORK WHICH SLUMPED 2 1/8 TO 52 1/4 FIRST BANK SYSTEM WHICH EASED 1 5/8 TO 26 3/4 FIRST INTERSTATE BANCORP WHICH LOST 2 3/8 TO 53 7/8 AND FIRST UNION WHICH FELL 2 TO 40 BANK PROFITS ARE DIRECTLY AFFECTED BY THE LEVEL OF SHORTTERM INTEREST RATES HIGHER RATES MEAN HIGHER COSTS AND LOWER PROFIT MARGINS FOR BANKS SHARES OF SECURITIES BROKERAGE FIRMS ALSO FELL MERRILL LYNCH FELL 2 3/8 TO 72 1/4 PAINEWEBBER GROUP DROPPED 1 3/8 TO 25 AND MORGAN STANLEY GROUP SLID 1 1/2 TO 64 5/8 JOHN SCHRAFF A VICE PRESIDENT OF EQUITIES TRADING AT DAIWA SECURITIES TIED THE LOSSES IN MANY TECHNOLOGY SHARES TO PROFITTAKING AFTER THE GROUP'S RECENT GAINS THERE WAS LITTLE NEWS IN THE GROUP ASIDE FROM THE ADVANCED MICRO RULING ADVANCED MICRO SKIDDED AFTER INTEL WON A COURT RULING LATE FRIDAY THAT WILL STRENGTHEN ITS HAND IN COPYRIGHT LAWSUITS IT IS PURSUING TO RESTRICT THE SUNNYVALE CALIF COMPANY'S ABILITY TO SELL CLONES OF INTEL'S BEST SELLING COMPUTER MICROPROCESSORS IN NASDAQ TRADING INTEL JUMPED 1 3/4 TO 58 1/8 INTERNATIONAL BUSINESS MACHINES LOST 1 3/4 TO 52 1/4 HEWLETTPACKARD SLID 1 5/8 TO 85 3/8 COMPAQ COMPUTER DECLINED 3 3/4 TO 56 AND DIGITAL EQUIPMENT LOST 1 1/2 TO 42 COOPER TIRE & RUBBER PLUMMETED ON CONCERNS ABOUT THE FINDLAY OHIO CONCERN'S EARNINGS THIS MORNING TBC CORP ONE OF COOPER'S BIGGEST CUSTOMERS PROJECTED DISAPPOINTING RESULTS AND SAID ITS REPLACEMENT TIRE BUSINESS WAS WEAK LATER COOPER SAID ITS SECONDQUARTER EARNINGS WILL LIKELY BE LOWER THAN THE 30 CENTS A SHARE IT POSTED A YEAR EARLIER TBC LOST 3 7/8 TO 11 7/8 IN OVERTHECOUNTER TRADING NEWELL CO SKIDDED 4 TO 33 7/8 AFTER IT REPORTED THAT THE SOFTNESS IN ITS RETAILING BUSINESS WILL LIKELY LEAVE ITS SECONDQUARTER EARNINGS BELOW THE 46 CENTS A SHARE IT REPORTED A YEAR EARLIER THE FREEPORT ILL COMPANY MAKES AND MARKETS HARDWARE OFFICE AND INDUSTRIAL PRODUCTS HOME DEPOT LOST 2 1/8 TO 42 3/8 AFTER MONTGOMERY SECURITIES DOWNGRADED THE STOCK TO HOLD FROM BUY ANALYST BO CHEADLE CITED CONCERN ABOUT INCREASING COMPETITION MONTGOMERY HAS RATED THE ALTANTA BUILDING PRODUCTS RETAILER A BUY FOR THE PAST NINE YEARS CASINO STOCKS WERE HIT BY HEAVY PROFITTAKING THE GROUP HAS SURGED LATELY AMID SPECULATION ON THE PROSPECTS FOR SOME COMPANIES' PLANNED RIVERBOAT CASINO OPERATIONS LOSERS YESTERDAY INCLUDED CIRCUS CIRCUS WHICH LOST 3 1/8 TO 56 1/2 PROMUS WHICH SHED 2 1/8 TO 43 AND CAESARS WORLD WHICH FELL 1 TO 47 THE SPECULATIVE TRADING IN ANDREA ELECTRONICS CONTINUED THE STOCK WHICH HAS CATAPULTED HIGHER RECENTLY ON HOPES ABOUT THE LONG ISLAND CITY NY COMPANY'S NOISE CONTROL TECHNOLOGY SURGED 16 1/4 TO 53 3/4 MANY TRADERS COMPLAIN THAT THEY HAVE HAD A HARD TIME GETTING INFORMATION FROM THE COMPANY OTHERS SAID THEY ARE SURPRISED THE COMPANY HASN'T MADE A STATEMENT ABOUT THE RECENT VOLATILITY IN ITS STOCK DAVID MILLER ANDREA'S LAWYER SAID THE FIRM FEARS THAT IF IT PUBLISHES A PRESS RELEASE DETAILING ANY DEVELOPMENTS RELATING TO ITS NOISE CONTROL DEVICE THEN IT WILL ONLY FUEL THE SPECULATION IN THE STOCK MR MILLER SAID EXECUTIVES FROM THE COMPANY MET WITH OFFICIALS AT THE AMERICAN STOCK EXCHANGE LAST FRIDAY MR MILLER SAID THE AMEX DIDN'T OBJECT TO ANDREA'S POLICY OF KEEPING QUIET UNTIL THERE IS A MATERIAL DEVELOPMENT AT THE COMPANY 9306080009 930608 MARKETING BRIEF PROCTER & GAMBLE CO CONSUMER PRODUCTS MAKER TO OFFER LESS DIAPERS A BOX PROCTER & GAMBLE CO SAID IT IS REDUCING THE NUMBER OF DISPOSABLE DIAPERS IN PACKAGES OF PAMPERS AND LUVS IN RESPONSE TO A SIMILAR MOVE FIVE MONTHS AGO BY RIVAL KIMBERLYCLARK CORP P&G SAID IT ALSO WILL CUT PACKAGE PRICES SO THAT THE PERDIAPER PRICE IS UNCHANGED THE CINCINNATIBASED CONSUMER PRODUCTS COMPANY SAID MOST PACKAGES WILL CONTAIN 10 FEWER DIAPERS P&G SAID ITS MOVE EFFECTIVE JULY 1 WILL ELIMINATE CONFUSION FOR CONSUMERS WHO IN SOME CASES ARE PAYING MORE FOR DIAPERS BY JUDGING VALUE BY SHELF PACKAGE PRICE ALONE DALLASBASED KIMBERLYCLARK REDUCED THE NUMBER OF DIAPERS IN EACH HUGGIES PACKAGE BY 10 IN JANUARY AND CUT THE PRICE BY 7 IT HAS SINCE REDUCED PRICES ANOTHER 7 IN RESPONSE TO PRICE CUTS BY P&G 9306080008 930608 FORM + FUNCTION BY JOHN PIERSON JOSEPH CURTIS AND STEPHEN SANDERS THINK TRASH BAGS OUGHT TO BE A BIG YAWN THEY'VE INVENTED WAYS OF HOLDING OPEN THE MOUTH OF A TRASH BAG WHILE LEAVING BOTH HANDS FREE TO FILL IT MR CURTIS A RETIRED CAR DEALER IN SURFSIDE BEACH SC DESIGNED THE GREAT MOUTH A BAG WITH A TUBULAR HEM INTO WHICH THE USER INSERTS A REUSEABLE CARDBOARD SNAKE TO STIFFEN THE MOUTH THE SNAKE TAKES PERHAPS 10 SECONDS TO INSERT THE GREAT MOUTH IS SIMPLER THAN THE LAWN AND LEAF BAG CART MADE BY AMES LAWN & GARDEN TOOLS PARKERSBURG WVA A WHEELED DOLLY WITH A HOOP AT THE TOP TO HOLD A BAG OPEN AND UPRIGHT IT'S TINY COMPARED TO THE EASY BAGGER MADE BY WILMARC INDIANAPOLIS A REUSABLE STIFF PLASTIC LINER THAT'S INSERTED INTO A BAG AND REMOVED ONCE THE BAG IS FULL MR SANDERS AN ENGINEER FROM RESTON VA HAS INVENTED A TRASH BAG WITH A MOUTH SO GREAT IT'S NO MOUTH AT ALL HIS LEAF RELEAF BAG IS A FLAT CIRCLE OF PLASTIC SIX FEET ACROSS WITH DRAW STRINGS AROUND THE CIRCUMFERENCE RAKE LEAVES ONTO THE SHEET AND PULL THE STRINGS TO FORM A BAG MR SANDERS SAYS HE HAS HAD A LOT OF ENCOURAGEMENT FROM CARLISLE PLASTICS BOSTON WHICH MAKES TRASH BAGS BUT JONATHAN KERR CARLISLE'S VICE PRESIDENT FOR OPERATIONS WARNS THAT BAGS WITH DRAWSTRINGS OR STIFFENER CHANNELS COST MORE HARVARD MEN AND WOMEN ARE GETTING TOGETHER TO DESIGN PRODUCTS UNDER PROFESSOR KIM CLARK 140 HARVARD BUSINESS SCHOOL STUDENTS WORKING IN TEAMS OF SEVEN DESIGNED NEW PRODUCTS FOR ORTHO TELEPAD ALZA AND INTERACTIVE NETWORK THEY PRODUCED MODELS AND BUSINESS PLANS AND THEY LIKED IT PAUL KENNEDY A SECONDYEAR STUDENT DUE TO RECEIVE HIS MBA THURSDAY SAYS THE COURSE WILL HELP HIM EVALUATE EMERGING COMPANIES AND THEIR PRODUCTS WHEN HE GOES TO WORK FOR COOPERS & LYBRAND MARYANN FINIW WHO HOPES TO BECOME A NEWPRODUCTDEVELOPMENT MANAGER SAYS SHE LEARNED HOW TO RUN A PROJECT THAT INVOLVED MARKETING MANUFACTURING AND DESIGN THE COMPANIES LIKED IT TOO SCOTT DANKMAN CHAIRMAN OF TELEPAD RESTON VA SAYS HIS COMPANY'S NEXT PENBASED COMPUTERS FOR MOBILE WORKERS WILL INCORPORATE AT LEAST ONE IDEA FROM HARVARD A CURVE WHERE THE COMPUTER RESTS AGAINST THE USER'S STOMACH RICH ADAM PRODUCT MANAGER AT INTERACTIVE NETWORK MOUNTAIN VIEW CALIF SAYS THERE'S A VERY GOOD CHANCE THAT SOME STUDENT IDEAS WILL MAKE HIS COMPANY'S NEXTGENERATION GAME CONTROLLERS THE TEAM EXPERIENCE WAS UNUSUAL FOR HARVARD SAYS PETER LAWRENCE CHAIRMAN OF THE CORPORATE DESIGN FOUNDATION BOSTON WHICH HELPED JUDGE THE EFFORTS OF THE STUDENT TEAMS UNUSUAL TOO WAS HAVING BUSINESS STUDENTS DESIGN REAL PRODUCTS FOR REAL CLIENTS HE SAYS BUSINESS IS LOOKING FOR PLACES WHERE PEOPLE CAN PARK BIKES COMPANIES IN 10 SEVERELY POLLUTED AREAS INCLUDING LOS ANGELES NEW YORK AND ALL OF NEW JERSEY WILL SOON BE REQUIRED TO REDUCE EMPLOYEE CAR TRIPS ONE WAY IS TO ENCOURAGE COMMUTING BY BICYCLE STERLINGWINTHROP THE DRUG COMPANY HAS INSTALLED RACKS FOR A DOZEN BIKES PLUS SHOWERS AND LOCKERS IN THE SUBCELLAR OF ITS MANHATTAN HEADQUARTERS LESTER REICH THE COMPANY'S ASSOCIATE MEDICAL DIRECTOR WHO HAS PEDALED TO WORK FROM BROOKLYN ALMOST EVERY DAY FOR 17 YEARS SAYS THE NEW INDOOR FACILITIES ARE WONDERFUL ESPECIALLY COMPARED WITH HIS PREVIOUS ARRANGEMENT HAVING TO CHAIN HIS BIKE TO A NOPARKING SIGN OUTSIDE ON PARK AVENUE SAATCHI & SAATCHI THE ADVERTISING FIRM HAS BIKE RACKS NEXT TO 24HOUR SECURITY BOOTHS ON THE TWO LEVELS OF ITS GARAGE IN NEW YORK A LOWCOST SMALLSPACE SOLUTION COMES FROM THE NATURAL RESOURCES DEFENSE COUNCIL WHICH HAS INSTALLED A DOZEN CEILING HOOKS FOR BIKES ON THE 10TH FLOOR OF ITS HEADQUARTERS IN NEW YORK EACH BIKE SPACE COSTS 45 TO INSTALL VS 100 FOR A TYPICAL BIKE RACK OR 500 FOR A BIKE LOCKER IN SOME PLACES PROVIDING PARKING FOR BIKES IS NO LONGER VOLUNTARY LOS ANGELES AND PALO ALTO CALIF REQUIRE IT IN NEW OR RENOVATED BUILDINGS IN NEW YORK A GROUP CALLED TRANSPORTATION ALTERNATIVES HAS PROPOSED THAT THE CITY REQUIRE INDOOR PARKING THE SIMPLEST AND CHEAPEST BIKE PARKING IS NEXT TO EACH EMPLOYEE'S DESK A PRACTICE LONG ALLOWED BY APPLE COMPUTER AT ITS LEASED HEADQUARTERS IN CUPERTINO CALIF BUT IN APPLE'S SHINY NEW RESEARCH AND DEVELOPMENT CENTER WHICH THE COMPANY OWNS APPLE HAS BECOME KIND OF STICKY ABOUT ALLOWING BIKES INDOORS SAYS ANGELA RAE APPLE'S TRANSPORTATIONDEMAND COORDINATOR INSTEAD APPLE HAS SUPPLIED RACKS AND LOCKERS BOTH OUTDOORS AND IN ITS UNDERGROUND PARKING LOT 9306080007 930608 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED JUNE 4 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER FORT WAYNE IND WILL REDEEM ON JULY 1 1993 ITS 1978 WATERWORKS REVENUE BONDS DUE JANUARY 1 19942003 NBD BANK FORT WAYNE IND IS PAYING AGENT ILLINOIS HOUSING DEVELOPMENT AUTHORITY WILL REDEEM ON JULY 1 1993 THE FOLLOWING HOUSING DEVELOPMENT BONDS 455000 OF ITS 75 1975 SERIES A BONDS DUE JULY 1 2000 AND 330000 OF ITS 7 5/8 1975 SERIES B BONDS DUE JULY 1 2005 FIRST NATIONAL BANK OF CHICAGO IS PAYING AGENT THE AUTHORITY ALSO CALLS FOR SPECIAL REDEMPTION THE FOLLOWING MULTIFAMILY HOUSING BONDS DUE JULY 1 OF THE INDICATED YEAR 1976 SERIES B 6750000 OF 7 BONDS DUE 2019 1978 SERIES A 255000 OF 62 DUE 1994 27000 OF 625 DUE 1995 290000 OF 63 DUE 1996 305000 OF 63 DUE 1997 325000 OF 64 DUE 1998 1950000 OF 6 DUE 2003 1900000 OF 675 DUE 2016 10355000 OF 75 DUE 2009 AND ALL OUTSTANDING OF 6 DUE 2023 1979 SERIES B 3005000 OF 6 DUE 2023 FIRST NATIONAL BANK OF CHICAGO IS PAYING AGENT METROPOLITAN TRANSPORTATION AUTHORITY WILL REDEEM ON JULY 1 1993 THE FOLLOWING BONDS 1665000 PRINCIPAL AMOUNT OF ITS 975 SERIES B TRANSIT FACILITIES REVENUE BONDS AND 825000 OF ITS 9 1/4 SERIES F COMMUTER FACILITIES SERVICE CONTRACT BONDS BOTH ISSUES DUE JULY 1 1995 CHEMICAL BANK NEW YORK IS TRUSTEE MICHIGAN STATE UNIVERSITY BOARD OF TRUSTEES WILL REDEEM THE FOLLOWING OAKLAND UNIVERSITY BONDS ON JULY 1 1993 57 TERM B BONDS DUE JAN 1 1994 AND 58 TERM C BONDS DUE JAN 1 1999 SOCIETY BANK MICHIGAN IN DALLAS TEXAS IS PAYING AGENT NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY WILL REDEEM ON JULY 1 1993 ITS ECONOMIC DEVELOPMENT BONDS MATURING JULY 1 199399 UNITED JERSEY BANK IS TRUSTEE NEWKIRK OKLA MUNICIPAL AUTHORITY WILL REDEEM ON JULY 1 1993 640000 PRINCIPAL AMOUNT OF THE FOLLOWING SERIES 1979 UTILITY SYSTEMS REVENUE BONDS DUE JULY 1 OF THE INDICATED YEAR 6 DUE 1994 61 DUE 199596 62 DUE 1997 AND 625 DUE 19982004 FIRST NATIONAL BANK & TRUST CO OF PONCA CITY OKLA IS TRUSTEE NEW YORK CITY MUNICIPAL ASSISTANCE CORPORATION HAS CALLED FOR OPTIONAL REDEMPTION ON JULY 1 1993 OF THE FOLLOWING COUPON BONDS DUE JULY 1 OF THE YEAR INDICATED ALL OUTSTANDING SERIES 40 BONDS DUE 19951999 2003 AND ALL OUTSTANDING 97 SERIES 41 BONDS DUE 2008 CITIBANK NEW YORK IS PAYING AGENT THE CORPORATION WILL ALSO REDEEM ON JULY 1 1993 ALL OUTSTANDING SERIES 44 COUPON BONDS DUE JULY 1 19951999 2008 CHASE MANHATTAN BANK NEW YORK IS PAYING AGENT NORTHERN MICHIGAN UNIVERSITY WILL REDEEM ON JULY 1 1993 115000 PRINCIPAL AMOUNT OF ITS 44 TERM B 1966 RESIDENCE HALLS REVENUE BONDS DUE JULY 1 2006 SOCIETY BANK MICHIGAN IN DALLAS TEXAS IS PAYING AGENT RUTGERS STATE UNIVERSITY WILL REDEEM ON JUNE 17 1993 THE FOLLOWING REVENUE BONDS ITS SERIES I G AND K BONDS DUE MAY 1 1994 FIRST FIDELITY BANK NEW JERSEY IS ESCROW AGENT WESTERN MICHIGAN UNIVERSITY WILL REDEEM ON JULY 1 1993 315000 PRINCIPAL AMOUNT OF ITS 41 AUDITORIUM TERM BONDS DUE JANUARY 1 1996 SOCIETY BANK MICHIGAN IN DALLAS IS PAYING AGENT PHILADELPHIA ELECTRIC CO WILL REDEEM ON AUG 1 1993 130000 SHARES OF ITS 9875 PREFERED STOCK WITH AN OPTION TO REDEEM UP TO AN ADDITIONAL 130000 SHARES 9306080006 930608 STEWART & STEVENSON JOBS HOUSTON STEWART & STEVENSON SERVICES INC SAID IT RECEIVED 100 MILLION OF CONTRACTS FOR GAS TURBINE GENERATOR EQUIPMENT THE CONTRACTS WITH TWO GOVERNMENTOWNED UTILITIES IN SOUTHEAST ASIA CALL FOR NINE UNITS STEWART & STEVENSON A MANUFACTURER OF GAS AND DIESEL TURBINE POWER EQUIPMENT HAD SALES OF 813 MILLION FOR THE FISCAL YEAR ENDED IN JANUARY 9306080005 930608 DIVIDEND NEWS BED BATH & BEYOND INC BED BATH & BEYOND INC SPRINGFIELD NJ A SUPERSTORE RETAILER OF HOME FURNISHINGS AND KITCHEN EQUIPMENT DECLARED A 2FOR1 STOCK SPLIT PAYABLE JULY 8 TO SHARES OF RECORD ON JUNE 21 9306080004 930608 BUSINESS BRIEF AMERICAN TELEPHONE & TELEGRAPH COMMUNICATIONS FIRM SEEKS TO RAISE SOME PHONE RATES AMERICAN TELEPHONE & TELEGRAPH CO BASKING RIDGE NJ WILL RAISE SOME LONGDISTANCE TELEPHONE CHARGES AND LOWER OTHERS BY A PENNY A MINUTE GIVING A NET INCREASE OF 465 MILLION A YEAR THE RATE CHANGES WOULD AFFECT CUSTOMERS WHO MAKE DIRECTDIAL STATETOSTATE CALLS FROM 5 PM TO 11 PM AND WOULD RAISE THE AVERAGE MONTHLY CONSUMER LONGDISTANCE BILL OF 17 BY FIVE CENTS ONE CHANGE WOULD DECREASE FROM 14 CENTS TO 13 CENTS THE INITIALMINUTE AND ADDITIONALMINUTE CHARGE ON CALLS FROM 11 TO 22 MILES ON LONGERDISTANCE CALLS INITIALMINUTE AND ADDITIONALMINUTE CHARGES WILL INCREASE TO 15 CENTS FROM 14 CENTS THE PRICE CHANGES GO INTO EFFECT JUNE 17 PENDING APPROVAL BY THE FEDERAL COMMUNICATIONS COMMISSION 9306080003 930608 IF YOU WALK AND CHEW THIS GUM YOU'LL STUMBLE WITH A NICE SMILE BY CARL QUINTANILLA STAFF REPORTER OF THE WALL STREET JOURNAL IF YOU'VE A PASSION FOR CHEWING GUM BUT A DISTASTE FOR THE DENTIST TAKE HEED CARL KLEBER WANTS TO DOUBLE YOUR PLEASURE THE FORT WAYNE IND DENTAL SCIENTIST HAS DEVELOPED A FORMULA FOR A GUM THAT CLEANS AND POLISHES TEETH WHILE YOU CHEW TINY ABRASIVES IN THE GUM HELP REMOVE UP TO 25 OF THE PLAQUE ON TEETH HE CLAIMS GREAT BUT HOW DOES IT TASTE THAT WAS THE STICKING POINT FOR YEARS SAYS MR KLEBER WHO HAS BEEN DEVELOPING THE GUM SINCE 1979 ALONG WITH COLLEAGUES FROM INDIANA UNIVERSITY PURDUE UNIVERSITY FORT WAYNE HOW DO YOU MAKE THIS STUFF PALATABLE TO THE AVERAGE 10YEAROLD NOT VERY EASILY APPARENTLY WHEN WE FIRST STARTED MAKING THE GUM THE PROTOTYPES WERE LIKE PIECES OF MUD OR HUNKS OF CLAY SAYS MR KLEBER OTHERS WERE TOO ABRASIVE AND SCRATCHED TOOTH ENAMEL INDEED THE SCIENTISTS HAD TO DEVISE A MASTICATION DEVICE OF HUMAN TEETH AND SALIVA TO SIMULATE CHEWING AND PROTECT INNOCENT TASTE BUDS HE ALSO SAYS AN EARLIER PRODUCT WAS FOUND TO BE SLIGHTLY RADIOACTIVE BY 1983 HAVING SLOWLY REFINED THE GUM'S TEXTURE AND FLAVOR IN CLINICAL TESTS IT WAS TIME FOR HUMAN GUINEA PIGS THERE'S REALLY NO ANIMAL THAT CHEWS GUM BESIDES HUMANS SAYS MR KLEBER YOU CAN GET A MONKEY TO CHEW IT FOR A COUPLE OF MINUTES BUT THEN THEY JUST TAKE IT OUT AND STICK IT IN THEIR HAIR FORT WAYNE ELEMENTARYSCHOOL PUPILS WHOM THE RESEARCHER DUBS PROFESSIONAL GUM CHEWERS BECAME THE FIRST TASTE TESTERS WHILE THEY SEEMED TO LIKE THE GUM WHAT THEY REALLY ENJOYED WAS BEING ABLE TO CHEW GUM IN SCHOOL THE SCHOOL KIDS HAVE NICKNAMED MR KLEBER THE CHEWING GUM MAN AND THE DENTAL DUDE WHICH HE SAYS IS KIND OF FLATTERING I GUESS SMALL SAMPLE BATCHES ARE NOW AVAILABLE IN SEVERAL FLAVORS AND A BUBBLE GUM RECENTLY TWO CALIFORNIA BUSINESSMEN ACQUIRED THE RIGHTS TO THE PRODUCT AND THEY SAY SOME COMPANIES ARE CONSIDERING LICENSING IT POSSIBLY BY YEAR'S END A SPOKESMAN FOR THE WM WRIGLEY JR CO CHICAGO DECLINES TO SAY WHETHER THE NATION'S BIGGEST GUM MAKER IS INTERESTED BUT A PUBLICIST FOR THE STILLUNNAMED GUM SAYS THERE ARE 100 MILLION PEOPLE WHO SIMPLY DON'T GO TO THE DENTIST IT'S AN UNTAPPED MARKET HAS MR KLEBER GROWN TIRED OF THE GUM AFTER 14 YEARS OF CHEWING WELL I'M CHEWING SOME RIGHT NOW HE SAYS SO I GUESS I STILL ENJOY IT 9306080002 930608 WHO'S NEWS HOFFMANNLA ROCHE INC HOFFMANNLA ROCHE INC NUTLEY NJ THOMAS P MAC MAHON 46 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AT THIS HEALTHCARE PRODUCTS CONCERN MR MAC MAHON WHOSE NEWLY CREATED POSITION INCREASES THE NUMBER OF SENIOR VICE PRESIDENTS TO FOUR WILL CONTINUE TO SERVE AS PRESIDENT OF THE COMPANY'S DIAGNOSTICS GROUP HOFFMANNLA ROCHE IS THE US UNIT OF HEALTHCARE AND PHARMACEUTICAL GIANT ROCHE HOLDING LTD BASEL SWITZERLAND 9306080001 930608 LETTERS TO THE EDITOR DOUBLE DOUBLE TOIL AND TROUBLE WHAT IS EDITOR ROBERT L BARTLEY'S FASCINATION WITH WITCHCRAFT IN MARCH HE REFERRED TO HILLARY CLINTON AND HER COVEN OF ADVISERS ON APRIL 29 HE SAID THE WORLD'S LEADING FINANCE MINISTERS AND CENTRAL BANKERS WILL MEET AT A SABBAT AND THAT PRESIDENT CLINTON'S MAGES SHOULD WARN AGAINST THROWING RANDOM INGREDIENTS INTO A CAULDRON ALTHOUGH SUCH VITRIOL IS TO BE EXPECTED FROM SOMEONE STILL UNDER THE SPELL OF THE SUPPLYSIDERS READING MR BARTLEY'S COLUMN IS LIKE LISTENING TO THE POT CALL THE KETTLE BLACK IT SEEMS MR BARTLEY IS SPOOKED BY THOSE WHO CAN'T DO THE VOODOO THAT HE DOES SO WELL 9306080103 930419 YOUR MONEY MATTERS BOND'S DURATION IS HANDY GUIDE ON RATES BY BARBARA DONNELLY GRANITO STAFF REPORTER OF THE WALL STREET JOURNAL SUPPOSE YOU BUY A 10YEAR TREASURY NOTE TODAY AT A YIELD TO MATURITY OF 6 AND INTEREST RATES SHOOT UP TO 8 WHAT HAPPENS TO YOUR INVESTMENT A YOU LOSE MONEY B YOU MAKE MONEY C NOTHING HAPPENS D ALL OF THE ABOVE THE ANSWER D ALL OF THE ABOVE HOW IS THAT POSSIBLE THE TRICK IS HOW LONG YOU HOLD THE INVESTMENT IN THE SHORT RUN YOU LOSE MONEY SINCE INTEREST RATES AND BOND PRICES MOVE INVERSELY TO ONE ANOTHER HIGHER RATES MEAN THE VALUE OF YOUR BOND INVESTMENT WITHERS WHEN RATES GO UP FOR A 10YEAR TREASURY YIELDING 6 A TWO PERCENTAGEPOINT RISE IN RATES WOULD CAUSE THE VALUE OF YOUR PRINCIPAL TO SINK BY ROUGHLY 14 ACCORDING TO CAPITAL MANAGEMENT SCIENCES A BOND RESEARCH COMPANY HOWEVER IF YOU HOLD THE NOTE RATHER THAN SELLING IT YOU'LL GET TO REINVEST THE INTEREST RECEIVED FROM IT AT THE NEW HIGHER 8 RATE OVER TIME THIS HIGHER INTEREST ON INTEREST ADDS UP ALLOWING YOU NOT ONLY TO OFFSET YOUR INITIAL LOSS OF PRINCIPAL BUT ALSO TO PROFIT MORE THAN IF RATES HAD NEVER MOVED AT ALL OVER 10 YEARS FOR INSTANCE A TREASURY NOTE WITH AN INITIAL YIELD OF 6 WOULD PRODUCE A TOTAL RETURN PRICE CHANGE PLUS INTEREST OF 65 A YEAR IF YOU COULD REINVEST THE INTEREST PAYMENTS AT 8 ACCORDING TO CAPITAL MANAGEMENT SCIENCES THAT COMPARES WITH AN AVERAGE RETURN OF 6 IF RATES REMAIN UNCHANGED IF RATES DROPPED SO THAT THE REINVESTMENT RATE DECLINED TO 4 THE 10YEAR RETURN WOULD AVERAGE JUST 55 A YEAR PERHAPS THE BEST WAY TO JUDGE A BOND'S INTERESTRATE SENSITIVITY IS TO GET A HANDLE ON ITS DURATION DURATION IS ONE MEASURE OF A BOND'S LIFE IT'S THAT SWEET SPOT SOMEWHERE BETWEEN THE SHORT TERM AND THE LONG TERM WHERE A BOND'S RETURN REMAINS PRACTICALLY UNCHANGED NO MATTER WHAT HAPPENS TO INTEREST RATES EXACTLY WHERE THAT POINT IS DOES TEND TO SLIDE ROUND A BIT AS INTEREST RATES REACH DIFFERENT LEVELS TO BE PRECISE IT TENDS TO COME EARLIER AS RATES GO UP AND MOVE LATER AS RATES SHRINK THE NET RESULT IS OFTEN A PLUS FOR INVESTORS BECAUSE THE POTENTIAL GAINS TEND TO BE BIGGER THAN THE POTENTIAL LOSSES FOR A GIVEN RATE MOVE IN EITHER DIRECTION UNLIKE MATURITY THE MORE WIDELY UNDERSTOOD MEASURE OF A BOND'S LIFE DURATION ADJUSTS FOR THE PRESENT VALUE OF THE MONEY GENERATED BY THE BOND THROUGHOUT ITS LIFE THROUGH INTEREST AND PRINCIPAL PAYMENTS PRESENT VALUE SIMPLY MEANS THAT IT'S WORTH MORE TO HAVE A DOLLAR IN HAND TODAY THAN IT IS TO RECEIVE IT SAY 10 YEARS IN THE FUTURE TO ACCOUNT FOR THIS EARLIER PAYMENTS IN A BOND'S LIFE ARE GIVEN GREATER WEIGHT THAN LATER PAYMENTS IN FIGURING ITS DURATION AS A RESULT A BOND'S DURATION ALMOST ALWAYS ENDS UP BEING SHORTER THAN ITS MATURITY FOR INSTANCE THE DURATION OF A 10YEAR TREASURY NOTE YIELDING 6 IN TODAY'S MARKET IS BETWEEN SEVEN AND 7 1/2 YEARS BY THAT TIME IN THAT NOTE'S LIFE POTENTIAL PRICE CHANGES AS RATES GO DOWN OR UP WOULD BE ABOUT EQUALLY OFFSET BY CONSEQUENT CHANGES IN THE AMOUNT OF INTERESTONINTEREST THAT WOULD BE RECEIVED AS A RESULT THE BOND'S TOTAL RETURN WILL ABOUT EQUAL ITS INITIAL YIELD TO MATURITY EVEN IF RATES CHANGE ANYONE WHO HOLDS A 10YEAR TREASURY NOTE FOR 7 1/2 YEARS AND DILIGENTLY REINVESTS THE INTEREST PAYMENTS CAN EXPECT A TOTAL RETURN THAT'S ROUGHLY IN LINE WITH THE INITIAL 6 YIELD NO MATTER IF RATES RISE OR FALL IN THE CASE OF ZEROCOUPON BONDS DURATIONS ARE EQUAL TO NOT SHORTER THAN MATURITIES ZEROCOUPON BONDS DON'T MAKE INTEREST PAYMENTS INSTEAD THEY ARE SOLD AT A DISCOUNT TO THE FACE VALUE THAT IS PAID TO INVESTORS AT MATURITY OVER THE YEARS BETWEEN ORIGINAL ISSUE AND MATURITY THE MARKET VALUE OF ZEROCOUPON BONDS CAN FLUCTUATE WIDELY INVESTORS HAVE TO HOLD THESE BONDS UNTIL MATURITY TO BE ASSURED OF LOCKING IN THEIR INITIAL YIELD DURATION IS A REASSURING FEATURE FOR INVESTORS WHO HAVE EXPENSES COMING DUE IN THE FUTURE FOR RETIREMENT OR TUITION PAYMENTS FOR INSTANCE THAT THEY NEED TO COVER WITH THE PROCEEDS OF THEIR BOND INVESTMENTS BY MAKING SURE THE DURATION OF THEIR INVESTMENTS ROUGHLY MATCHES THE DUE DATE OF THEIR EXPENSES THEY CAN AVOID BEING CAUGHT OFF GUARD BY ADVERSE RISES IN INTEREST RATES BUT THE BEST THING ABOUT DURATION MAY BE THAT IT PROVIDES AN EXTREMELY HANDY GAUGE OF INTERESTRATE RISK IN A GIVEN BOND OR BOND FUND TO FIGURE OUT HOW MUCH PRICES WILL MOVE IN RESPONSE TO RATE CHANGES SIMPLY MULTIPLY THE PERCENTAGE CHANGE IN RATES BY THE DURATION OF THE BOND OR BOND FUND AND VOILA YOU HAVE A PRETTY GOOD ESTIMATE OF WHAT TO EXPECT BECAUSE DURATION SHIFTS AROUND SOMEWHAT AS RATES CHANGE THE NUMBERS DON'T WORK OUT EXACTLY HOWEVER THE RESULTS OF THIS ANALYSIS STILL GET YOU IN THE BALLPARK FOR INSTANCE IF RATES GO FROM 6 TO 8 A 10YEAR TREASURY NOTE WITH A DURATION OF 74 WILL TAKE A PRICE HIT OF ABOUT 135 OR A BIT LESS THAN TWO PERCENTAGE POINTS TIMES THE DURATION ACCORDING TO CAPITAL MANAGEMENT SCIENCES IF RATES GO FROM 6 TO 4 ON THE OTHER HAND THAT SAME NOTE CAN BE EXPECTED TO GAIN ABOUT 16 IN PRICE OR A BIT MORE THAN TWO PERCENTAGE POINTS TIMES THE DURATION THE DATA SHOW A 30YEAR TREASURY MEANWHILE WITH A DURATION OF ABOUT 125 WOULD BE MUCH MORE VOLATILE IT WOULD LOSE ABOUT 21 IF RATES ROSE TWO PERCENTAGE POINTS OR A BIT LESS THAN THE RATE CHANGE TIMES THE DURATION AND GAIN ABOUT 31 IF RATES FELL BY THE SAME AMOUNT OR A BIT MORE THAN THE RATE CHANGE TIMES THE DURATION BY CONTRAST A 30YEAR ZERO COUPON BOND WITH A DURATION OF 30 COULD BE EXPECTED TO REACT EVEN MORE DRASTICALLY TO A GIVEN CHANGE IN RATES HOW MUCH CAN DURATION SHIFT FOR TREASURYS AND OTHER NONCALLABLE BONDS DURATION REMAINS RELATIVELY STABLE WITHIN QUITE A WIDE BAND OF INTERESTRATE SWINGS FOR INSTANCE THE DURATION OF 10YEAR TREASURYS WOULD REMAIN BETWEEN SEVEN AND EIGHT YEARS EVEN AT RATES AS LOW AS 3 OR AS HIGH AS 9 HOWEVER FOR TRICKIER TYPES OF BONDS INCLUDING MANY MORTGAGEBACKED SECURITIES AND CALLABLE BONDS DURATIONS CAN SNAP AROUND QUITE SHARPLY WITH INTERESTRATE MOVES AS A RESULT CURRENT DURATION ESTIMATES FOR THESE KINDS OF BONDS CAN BE QUITE MISLEADING THAT'S PARTICULARLY TRUE IF THESE BONDS ARE PRICED AT PREMIUM TO THEIR FACE VALUE AS MOST OF THE MORTGAGEBACKED BONDS AND CALLABLE BONDS ARE THESE DAYS SEE RELATED LETTER LETTERS TO THE EDITOR BOND DURATION MUST BE READJUSTED WSJ JUNE 8 1993 9304190028 YY93 MM06 9306080062 930427 EDUCATION TROPHY TRANSCRIPT HUNTERS ARE FINDING PROFESSORS HAVE BECOME AN EASY MARK BY SUZANNE ALEXANDER STAFF REPORTER OF THE WALL STREET JOURNAL AT PRINCETON UNIVERSITY 80 OF UNDERGRADUATES GET NOTHING BUT AS AND BS AT STANFORD ONLY 8 GET CS AND DS AND NONE GET FS AT HARVARD THE MEAN GRADE IS EQUIVALENT TO BETTER THAN A B+ UP FROM A B 25 YEARS AGO ARE THE STUDENTS AT THESE SCHOOLS REALLY THAT SMART MANY EDUCATORS DON'T THINK SO THEY SAY THEIR COLLEAGUES ARE GOING SOFT ON STUDENTS AND LOWERING STANDARDS AS A RESULT THESE ACADEMICS HAVE BEGUN EFFORTS TO CUT BACK ON HIGHER MARKS ALSO CALLED GRADE INFLATION CRITICS MAINTAIN THAT GRADE INFLATION DEVALUES EDUCATION AND MAKES STUDENTS LAZY SINCE IT APPEARS TO BE A PARTICULAR PROBLEM IN THE HUMANITIES WHERE GRADING IS MORE SUBJECTIVE ONE OF THE EDUCATORS' BIGGEST WORRIES IS THAT MANY STUDENTS ARE AVOIDING TOUGHER SCIENCE MAJORS IN FAVOR OF A BETTERLOOKING TRANSCRIPT WE'RE PARTICIPATING IN A NATIONWIDE DRIFT TOWARD LOWER STANDARDS COMPLAINS LAWRENCE BUELL DEAN OF UNDERGRADUATE EDUCATION AT HARVARD DEAN BUELL SENT LETTERS TO HARVARD'S ALMOST 800 UNDERGRADUATE FACULTY MEMBERS IN JANUARY ASSERTING THAT GRADES WERE SO INFLATED THAT APPROPRIATE DISTINCTIONS AMONG LEVELS OF STUDENT PERFORMANCE CAN NO LONGER BE MADE HE URGED FACULTY MEMBERS TO MAINTAIN THE C AS A VIABLE LETTER GRADE GRADES ARE UP AT A TIME WHEN STUDIES SHOW THAT EVEN TOP STUDENTS HAVE BIG GAPS IN WHAT THEY KNOW ABOUT US HISTORY AND CURRENT EVENTS A RECENT SURVEY OF 3000 IVY LEAGUE STUDENTS DISCLOSED THAT 44 DIDN'T KNOW THE NAME OF THE SPEAKER OF THE HOUSE 59 COULDN'T NAME FOUR SUPREME COURT JUSTICES AND 35 COULDN'T IDENTIFY THE BRITISH PRIME MINISTER SOME PROFESSORS DENY THAT GRADE INFLATION EXISTS ARGUING THAT THEIR STUDENTS' ADMISSION INTO RESPECTED UNIVERSITIES IS EVIDENCE THAT THEY ARE GOOD SCHOLARS I DON'T KNOW WHAT ELSE YOU'D EXPECT WHY SHOULDN'T THE PEOPLE DO PRETTY WELL ASKS DONALD FLEMING A HISTORY PROFESSOR AT HARVARD WHO GRANTS HIS STUDENTS MOSTLY AS AND BS ADDS PROF FLEMING A B IS CONSIDERED AN INSULTING GRADE HERE LOWERING HIGH GRADES ISN'T EASY GRADING STANDARDS ARE THE PROVINCE OF PROFESSORS' INDEPENDENT JUDGMENT AND CUSTOM DICTATES THAT UNIVERSITY ADMINISTRATIONS CAN'T INTERFERE SOME PROFESSORS WORRY THAT IF THEY DROP THEIR GRADES AND OTHERS DON'T THEIR STUDENTS WILL BE UNFAIRLY PENALIZED MORE CLASS GRADING ON THE CURVE EFFECTIVELY MANDATING THAT A QUOTA OF STUDENTS WOULD GET CS AND DS WOULD UNFAIRLY PUNISH THOSE CLASSES WITH A SURFEIT OF SUPERIOR STUDENTS OTHERS SAY MANY PROFESSORS CONTEND THAT CONTROLLING GRADE POLICIES IS PART OF THEIR ACADEMIC FREEDOM SAYS DAVID BOOTH VICE PROVOST AT WILLIAMS COLLEGE IN WILLIAMSTOWN MASS BUT MR BOOTH CONCEDES THAT ACADEMIC FREEDOM BRINGS PROBLEMS LAST YEAR 48 OF WILLIAMS'S 520 SENIORS GRADUATED WITH HONORS IN 1985 ONLY 31 DID TO ADDRESS THE ISSUE WILLIAMS RECENTLY ASKED EACH DEPARTMENT CHAIRMAN TO SURVEY PROFESSORS' ATTITUDES TOWARD GRADES ONE EFFECT IS THAT IN SOME DEPARTMENTS SUCH AS ECONOMICS PROFESSORS ARE NOW ASKING THEIR COLLEAGUES TO DEFEND GRANTING LARGE NUMBERS OF AS JUST HAVING THESE KINDS OF DISCUSSIONS TENDS TO BRING FACULTY MEMBERS IN LINE SAYS MR BOOTH SOME SCHOOLS AVOID GRADE INFLATION BY USING A DIFFERENT KIND OF EVALUATION SYSTEM AT THE UNIVERSITY OF CALIFORNIA AT SANTA CRUZ STUDENTS DON'T RECEIVE LETTER GRADES AT ALL SINCE THE UNIVERSITY'S FOUNDING IN 1965 STUDENTS HAVE RECEIVED NARRATIVE DESCRIPTIONS OF STRENGTHS AND WEAKNESSES THE POLICY IS DESIGNED TO REDUCE COMPETITIVENESS AND PROVIDE MORE DETAILED INFORMATION ABOUT PERFORMANCE GRADE INFLATION ACCORDING TO CRITICS BEGAN IN THE 1960S WHEN SYMPATHETIC PROFESSORS RAISED GRADES TO HELP MEDIOCRE STUDENTS MAINTAIN THEIR VIETNAMDRAFT DEFERMENTS SINCE THEN AVERAGE GRADES AT MANY UNIVERSITIES HAVE DRIFTED UPWARD TO AS AND BS IN THE LAST FEW DECADES FROM B AND C AVERAGES IN THE 1960S SAY ACADEMICS WHO HAVE STUDIED THE ISSUE MANY BELIEVE THAT GRADE INFLATION IS MORE SERIOUS IN THE HUMANITIES WHERE EVALUATIONS CAN'T BE BASED ON EXACT ANSWERS AS THEY ARE IN THE SCIENCES IN A 1991 STUDY BY TWO ECONOMISTS AT WILLIAMS SEVEN UNIVERSITIES INCLUDING AMHERST COLLEGE DUKE UNIVERSITY POMONA COLLEGE AND THE UNIVERSITY OF WISCONSIN REPORTED SUBSTANTIALLY HIGHER GRADES IN HUMANITIES COURSES WE FOUND THE LOW GRADES IN THE SCIENCES WERE ACTUALLY DISCOURAGING ENROLLMENTS IN THOSE DISCIPLINES AND THE HIGH GRADES WERE ATTRACTING STUDENTS TO HUMANITIES SAYS RICHARD SABOT ONE OF THE STUDY'S AUTHORS AND A PROFESSOR AT WILLIAMS DEBORAH STEINBURGER A HARVARD SOPHOMORE MAJORING IN SOCIAL STUDIES SAYS THE PATTERN SOUNDS FAMILIAR I KNOW PEOPLE THIS YEAR WHO WORKED HARVARD LIKE A GAME AND GOT INTO THESE TOP GRADUATE SCHOOLS WHAT DID THEY DO THEY TOOK THESE REALLY EASY CLASSES IN THE HUMANITIES FOR A B THEY DID SOME READING AND PULLED AN ALLNIGHTER' BEFORE THE FINAL EXAM THERE'S KIND OF A TACIT UNDERSTANDING AT HARVARD THAT HUMANITIES PROFESSORS DON'T GIVE OUT MANY CS LENIENT PROFESSORS AREN'T THE ONLY CAUSE OF GRADE INFLATION HOWEVER A COMMON UNIVERSITY POLICY CALLED PASS/FAIL WHERE D STUDENTS RECEIVE A PASS ON THEIR TRANSCRIPTS AND CREDIT TOWARD GRADUATION HAS ALSO INFLATED GRADEPOINT AVERAGES BEGINNING WITH LAST YEAR'S GRADUATING CLASS YALE HAS ALSO CAPPED AT 30 THE PERCENTAGE OF ITS SENIORS ALLOWED TO GRADUATE WITH HONORS IN 1988 50 OF YALE'S 1300 SENIORS EARNED HONORS DEGREES JOHN MEESKE YALE'S REGISTRAR SAYS THE POLICY WAS ADOPTED BECAUSE WE WANTED HONORS TO BE A DISTINCTION STANFORD UNIVERSITY IS CONSIDERING TIGHTENING ITS STANDARDS NEXT YEAR THE FACULTY WILL VOTE ON WHETHER TO REINSTITUTE THE F GRADE WHICH WAS ELIMINATED ABOUT 20 YEARS AGO SO THAT ACADEMIC RECORDS WOULD BETTER REFLECT STUDENT ACCOMPLISHMENTS CURRENTLY WHEN STUDENTS FAIL A COURSE NO RECORD OF THE FAILURE APPEARS ON THEIR TRANSCRIPTS COURSES REQUIRED FOR GRADUATION MUST BE TAKEN OVER AND PASSED IF REINSTATED THE F GRADE MAY HURT SOME STANFORD STUDENTS BUT OTHERS WILL SURELY GET AROUND IT BY USING STANFORD'S LIBERAL CLASS WITHDRAWAL POLICY STUDENTS CAN DROP A COURSE 24 HOURS BEFORE A FINAL EXAM NO RECORD OF THESE CLASSES APPEARS ON THEIR TRANSCRIPTS EITHER STANFORD HAS A REALLY LAX POLICY COMPLAINS JULIE MAKINEN EDITOR OF THE STANFORD DAILY STUDENT PAPER IT ISN'T FAIR TO THE PEOPLE WHO DO EXCELLENT WORK SEE RELATED LETTERS LETTERS TO THE EDITOR DOUBLE DOUBLE TOIL AND TROUBLE WSJ JUNE 8 1993 9304270108 YY93 MM06 9306080029 930428 INTERNATIONAL EGYPT IN SHIFT TO RESTRAIN FORCE AGAINST SUSPECTED ISLAMIC RADICALS CAIRO ALSO CLAIMS A SUSPECT IN TRADE CENTER BLAST WAS ABUSED BY US BY PETER WALDMAN STAFF REPORTER OF THE WALL STREET JOURNAL CAIRO EGYPT PRESIDENT HOSNI MUBARAK IN A SHIFT OF TACTICS IS MOVING TO CURB THE USE OF EXCESSIVE FORCE AGAINST SUSPECTEDISLAMIC EXTREMISTS SEPARATELY AN INTERIOR MINISTRY SPOKESMAN IN AN ANGRY RESPONSE TO US ALLEGATIONS THAT POLICE IN EGYPT MAY HAVE TORTURED A SUSPECT IN THE NEW YORK WORLD TRADE CENTER BOMBING AFTER ARRESTING HIM IN MARCH SAID THE MAN MAHMOUD ABOUHALIMA HAS MADE A SIMILAR CHARGE AGAINST US AGENTS FOR SEVERAL MONTHS MR MUBARAK AND EGYPT'S HUGE POLICE FORCE HAVE WAGED A CAMPAIGN TO ROOT OUT MUSLIM RADICALS WHO ARE SEEKING TO REPLACE HIS SECULAR REGIME WITH AN ISLAMIC GOVERNMENT IN A SERIES OF BLOODY CLASHES THOUSANDS OF PARAMILITARY POLICE TROOPS HAVE LAID SIEGE TO MOSQUES VILLAGES AND ENTIRE SECTIONS OF CAIRO ROUNDING UP NEARLY EVERYONE IN SIGHT AND INFLICTING WIDESPREAD HUMAN RIGHTS ABUSES ACCORDING TO EGYPTIAN AND WESTERN HUMAN RIGHTS GROUPS THE AUTHORITIES' AGGRESSIVE TACTICS INCLUDING THE ARREST OF FAMILY MEMBERS TO DRAW OUT WANTED MEN HAVE DEGENERATED INTO VENDETTAS BETWEEN THE POLICE AND MUSLIM INSURGENTS PARTICULARLY IN TOWNS IN CENTRAL EGYPT SOUTH OF CAIRO IN THE PAST YEAR 140 PEOPLE HAVE DIED IN EGYPTIAN VIOLENCE INCLUDING THREE FOREIGN TOURITS BUT IN A TACIT ADMISSION THAT THE IRON FIST IS CREATING MORE ENEMIES THAN IT IS CRUSHING MR MUBARAK'S NEWLY NAMED INTERIOR MINISTER HASSAN MOHAMMED ELALFI IS ORDERING POLICE COMMANDERS TO USE RESTRAINT UNDER THE MINISTER'S GUIDELINES THE POLICE MAY ARREST ONLY WANTED MEN THEMSELVES NOT THEIR RELATIVES THEY ARE PERMITTED TO OPEN FIRE ONLY WHEN THEIR LIVES ARE ENDANGERED AND THEY HAVE BEEN WARNED AGAINST PERSONALIZING THE CONFLICT IN THEIR DISTRICTS TO UNDERSCORE THE POINT ON MONDAY MR ELALFI REMOVED THE COMMANDER IN THE MUSLIM HOTBED OF ASSIUT SAYING THE GENERAL'S HARSH TACTICS HAD TURNED THE AREA INTO A POLICE STATE MR ELALFI BELIEVES THE STRENGTH OF THE POLICE ISN'T IN THEIR GUNS BUT IN THEIR AUTHORITY AS THE LEGAL ARM OF THE STATE SAID GEN BAHA ELDIN THE INTERIOR SPOKESMAN IF THEY LOSE THIS LEGAL AUTHORITY THEY ARE JUST LIKE THE TERRORISTS AS FOR TORTURE IN EGYPTIAN PRISONS GEN ELDIN SAID THE INTERIOR MINISTER WANTS TO STOP IT BUT NO POLICE FORCE IS PERFECT NOT IN ENGLAND NOT IN AMERICA THE GENERAL ALSO RESPONDED TO A REPORT BY A US COURTAPPOINTED DOCTOR WHO EXAMINED THE BOMBING SUSPECT MR ABOUHALIMA ON HIS ARRIVAL FROM EGYPT SAYING THAT THE MAN HAD BEEN BRUISED AND BURNED WITH CIGARETTES WHILE IN EGYPTIAN CUSTODY HE SAID IF MR ABOUHALIMA BRINGS TORTURE CHARGES AGAINST EGYPT THEY WILL BE INVESTIGATED BUT FOR NOW HE ADDED IT IS JUST AS LIKELY THAT MR ABOUHALIMA WAS ABUSED BY US AGENTS AS BY EGYPTIAN ONES ABOUHALIMA WROTE A LETTER TO HIS WIFE IN EGYPT AND WE HAVE THE LETTER IN WHICH HE SAID AMERICAN POLICE TORTURED HIM TRYING TO GET HIS CONFESSION GEN ELDIN SAID THE GENERAL ALSO SAID THE INTERIOR MINISTER HAS ENDED THE DIALOGUE THAT HIS PREDECESSOR AGDELHALIM MOUSSA HAD BEGUN WITH MODERATE ISLAMIC INTERMEDIARIES AND JAILED ISLAMIC RADICALS NO NEGOTIATIONS NO MEETINGS NO TALK WHATSOEVER EVEN WITH MODERATES GEN ELDIN SAID THE STATE CANNOT BARGAIN WITH CRIMINALS 9306080011 930426 MYSTERY IN THE SKY JET'S NEARCRASH SHOWS 747S MAY BE AT RISK OF AUTOPILOT FAILURE IN RARE INSTANCES PLANES GO INTO UNEXPECTED ROLLS EXPERTS CAN'T FIND FLAW ADVICE TO CREWS STAY ALERT BY WILLIAM M CARLEY STAFF REPORTER OF THE WALL STREET JOURNAL THE BOEING 747 WAS BORING THROUGH NIGHT SKIES NORTH OF THUNDER BAY CANADA WHEN THE AUTOPILOT SYSTEM BEGAN TO MALFUNCTION UNKNOWN TO THE TWO PILOTS IN THE COCKPIT THE AUTOPILOT SYSTEM WAS BANKING THE PLANE TO THE RIGHT THE SKIES WERE SO DARK AND THE MOTION SO GENTLE THAT THE PILOTS DIDN'T FEEL OR SEE IT THE JET TIPPED ITS WINGS 30 DEGREES TO THE RIGHT MAXIMUM FOR NORMAL AIRLINE OPERATIONS THEN 60 DEGREES AND THEN 90 DEGREES ITS RIGHT WING POINTING STRAIGHT DOWN WITH WINGS VERTICAL INSTEAD OF LEVEL THE JET LOST LIFT AND BEGAN DIVING WARNING LIGHTS FLASHED ON IN THE COCKPIT WHAT'S GOING ON SHOUTED CAPT BILL JACKSON CHRIS HEAD THE COPILOT GRABBED THE CONTROL WHEEL WRENCHING IT LEFT TO STOP THE ROLL AND HE RADIOED AIR TRAFFIC CONTROL WE HAVE AN EMERGENCY SHUDDERING AND SHAKING THE JUMBO JET WAS DIVING AT ALMOST THE SPEED OF SOUND BEYOND DESIGN LIMITS WING PANELS WERE BREAKING OFF AND THE PILOTS FEARED THE JET WOULD DISINTEGRATE BEFORE IT WAS OVER THE PLANE PLUNGED MORE THAN TWO MILES FROM 31000 FEET TO 19000 BEFORE THE PILOTS WERE ABLE TO ROLL THE WINGS LEVEL AND PULL OUT TURNING SOUTHWEST THEY MANAGED TO LAND SAFELY AT THE DULUTH MINN AIRPORT THE 747 INVOLVED IN THIS INCIDENT 16 MONTHS AGO WAS A PASSENGER JET CONVERTED TO CARGO AND FLOWN BY EVERGREEN INTERNATIONAL AIRLINES A SMALL CARGO OUTFIT BASED IN MCMINNVILLE ORE BUT SUCH FAULTS IN THE AUTOPILOT SYSTEM THOUGH THEY SHOW UP ONLY RARELY APPARENTLY COULD TURN UP IN NEARLY ANY OF THE BOEING 747 PASSENGER OR CARGO JETS NOW BEING FLOWN BY AIRLINES AROUND THE WORLD AFTER EVERGREEN'S BRUSH WITH FATE THE FEDERAL AVIATION ADMINISTRATION BEGAN INVESTIGATING IT FOUND 30 SIMILAR INCIDENTS THE FAA BELIEVES WERE CAUSED BY A BROAD VARIETY OF AUTOPILOT FAULTS THE INCIDENTS BOTH FAST AND SLOW ROLLS SHOWED UP ON 747S AT SEVERAL AIRLINES OVER A 22YEAR PERIOD MANY OCCURRED IN DAYLIGHT WITH A HORIZON VISIBLE ENABLING PILOTS TO REGAIN CONTROL MORE QUICKLY AND POSTPONING THE DAY WHEN THE SERIOUSNESS OF THE PROBLEM WOULD BE WIDELY RECOGNIZED AMONG CARRIERS WHOSE 747 AUTOPILOTS HAVE THROWN THEIR PLANES INTO ROLLS ARE BRITISH AIRWAYS TRANS WORLD AIRLINES AIR CANADA AND LUFTHANSA THE BRITISH AIRWAYS JET ON A MIAMILONDON PASSENGER FLIGHT IN 1989 BANKED 52 DEGREES BEFORE THE PILOTS RIGHTED IT AIR CANADA ON A MONTREALPARIS FLIGHT IN 1990 BANKED 71 DEGREES BEFORE RECOVERING EVERGREEN ISN'T AN ISOLATED CASE WE HAVE A BROADER PROBLEM WITH THE 747 AUTOPILOT SYSTEM SAYS GREGORY PHILLIPS AN INVESTIGATOR WITH THE NATIONAL TRANSPORTATION SAFETY BOARD BOEING CO THE AIRLINES AND AVIATION REGULATORS ARE IN A QUANDARY AFTER MORE THAN A YEAR OF INTENSE INVESTIGATION FOLLOWING EVERGREEN'S NEARDISASTER ENGINEERS CAN'T AGREE ON WHETHER THE FAULT LIES IN THE AUTOPILOT OR ELSEWHERE OR ON WHAT THE REMEDY SHOULD BE BOEING SAYS PILOTS SHOULD PAY CLOSE ATTENTION TO THEIR JOB SO THEY CAN QUICKLY RIGHT THE PLANE SHOULD THE AUTOPILOT THROW IT INTO A ROLL AUTOPILOTS ARE DESIGNED TO ASSIST AND SUPPLEMENT THE PILOT'S CAPABILITIES AND NOT REPLACE THEM A COMPANY STATEMENT SAYS THIS MEANS OUR AIRPLANES ARE DESIGNED SO PILOTS ARE THE FINAL CONTROL AUTHORITY AND IT MEANS THAT A WELL TRAINED CREW IS THE FIRST LINE OF SAFETY ENGINEERS AT HONEYWELL INC MANUFACTURER OF THE AUTOPILOT DEFEND THE PRODUCT SAYING THAT THEIR TESTING FOUND NO FAULTS IN THE EVERGREEN AUTOPILOT AND THAT THEY BELIEVE IT PLAYED NO ROLE IN THE MISHAP SOME INDUSTRY OFFICIALS ALSO BACK THE HONEYWELL AUTOPILOT SAYING ALL ELECTRICAL DEVICES FAIL AT SOME TIME AND THE FAILURE RATE OF THE HONEYWELL UNIT IS SO LOW AS TO MAKE THE RISK MINUSCULE ACCORDING TO THE FAA STUDY THE 31 KNOWN AND SUSPECTED AUTOPILOT FAILURES THAT LED TO UNCOMMANDED 747 ROLLS OVER 22 YEARS MAKE THE INCIDENCE OF SUCH A ROLL ABOUT 1 PER MILLION FLIGHT HOURS AN IMPROBABLE EVENT IN FAA PARLANCE BUT THE NTSB WHICH IS HELPING INVESTIGATE THE EVERGREEN INCIDENT HAS STATED IN A REPORT THAT THE POTENTIAL EXISTS FOR LOSS OF AN AIRPLANE WHEN AUTOPILOTS WERE DESIGNED WE WORRIED THAT A MALFUNCTION WOULD DO SOMETHING TO THE AIRPLANE SO FAST THAT PILOTS COULDN'T REACT IN TIME SAYS MR PHILLIPS THE NTSB INVESTIGATOR NOW WE HAVE A MALFUNCTION WHERE THE AUTOPILOT IS COMMANDING A ROLL SO SLOW SMOOTH AND INSIDIOUS THAT THE PILOTS MAY NOT NOTICE IT AND THAT CAN BE EQUALLY DANGEROUS NTSB EXPERTS ARE PARTICULARLY WORRIED ABOUT LONG FLIGHTS ACROSS OCEANS OFTEN MADE AT NIGHT WITH NO HORIZON VISIBLE AS ONE REMEDY THE AGENCY HAS URGED THAT A SYSTEM BE INSTALLED IN 747 COCKPITS THAT WOULD CALL OUT A WARNING IF A FAULTY AUTOPILOT FORCED A PLANE TO ROLL TOO FAR BUT AIRLINES DON'T LIKE THE IDEA OF MORE BELLS AND WHISTLES AS THEY CALL THEM WE'VE LOOKED AT A WARNING SYSTEM IN THE WAKE OF THE EVERGREEN INCIDENT SAYS EDWARD SOLIDAY UNITED AIRLINES' VICE PRESIDENT FOR FLIGHT SAFETY HE SAYS UNITED WOULD BE RELUCTANT TO ADOPT ONE NOTING THAT IN SOME CASES THE DEVICES CAN PROVIDE FALSE WARNINGS AND CAN INTERFERE WITH THE PILOTS' NORMAL THOUGHT PROCESSES THUS FAR THE FAA HASN'T ORDERED SUCH DEVICES WHILE SAFETY EXPERTS DEBATE THE THREAT CONTINUES THE AUTOPILOT INVOLVED IS USED IN MORE THAN 650 BOEING 747S NOW IN USE AROUND THE WORLD BOEING'S LATEST MODEL OF THE JUMBO JET THE 747400 USES A NEW AND DIFFERENT AUTOPILOT THE HONEYWELL AUTOPILOT IS ALSO USED IN SOME OTHER JETS INVESTIGATORS AGREE THAT THE EVERGREEN INCIDENT IS BY FAR THE MOST SEVERE CASE INVOLVING A SUSPECTED AUTOPILOT FAULT THE EVERGREEN FLIGHT UNDER CHARTER TO JAPAN AIR LINES TOOK OFF FROM NEW YORK'S KENNEDY AIRPORT AT 240 AM DEC 12 1991 THE JET WAS TO FLY TO ANCHORAGE ALASKA TO REFUEL AND THEN ON TO TOKYO IT CARRIED 82 TONS OF CARGO INCLUDING 60000 POUNDS OF MAINE LOBSTER AND SEA URCHINS DELICACIES IN JAPAN A SHIPMENT OF GOLD AND CASH AND A FAMOUS PAINTING THAT JAL DECLINES TO IDENTIFY CAPT JACKSON THEN 48 AND COPILOT HEAD 41 HAD FLOWN FOR US CARRIERS FOR YEARS SITTING BEHIND THEM WERE FLIGHT ENGINEER EDWARD SMITH AND THREE OTHER EVERGREEN EMPLOYEES GOING TO ALASKA THE JET FLEW NORTHWEST OVER SYRACUSE NY PAST SUDBURY ONTARIO AND THEN OVER REMOTE CANADIAN FORESTS IN THE COCKPIT INSTRUMENT LIGHTS GLOWED OUTSIDE COPILOT MR HEAD RECALLS IT WAS PITCH BLACK NO LIGHTS ON THE GROUND NO STARS IN THE SKY HE ADDS WE WERE TAKING 125 KNOTS ON THE NOSE A HEAD WIND THAT SLOWED THE FLIGHT IT WAS GOING TO BE A LONG NIGHT BEFORE WE GOT TO ANCHORAGE WITH THE INERTIAL NAVIGATION SYSTEM DETERMINING THE JET'S COURSE AND THE AUTOPILOT FLYING THE PLANE CAPT JACKSON WAS IN CHARGE OF WATCHING THE CONTROLS COPILOT MR HEAD WAS BENT OVER FILLING OUT COMPANY FORMS FLIGHT ENGINEER MR SMITH HAD JUST CHECKED THE THROTTLE SETTINGS ABOUT 520 AM CAPT JACKSON SAYS JUST AS HE LEANED BACK TO RETRIEVE SOME NAVIGATIONAL CHARTS FROM HIS BRIEFCASE THE AUTOPILOT SYSTEM SILENTLY BEGAN TO MALFUNCTION WITHIN 15 SECONDS THE PLANE HAD ROLLED GENTLY TO THE RIGHT 30 DEGREES WITH GATHERING MOMENTUM THE JET'S ROLL ACCELERATED IN THE NEXT SEVEN SECONDS BANKING ANOTHER 40 DEGREES AT THIS POINT THE AIRPLANE'S INERTIAL NAVIGATION SYSTEM HAD TILTED SO FAR THAT ITS GYROSCOPES COULDN'T FUNCTION AND RED LIGHTS SIGNALING FAILURE OF THE SYSTEM LIT UP IN THE COCKPIT AFTER EXCLAIMING WHAT'S GOING ON CAPT JACKSON LOOKED AT HIS ATTITUDE INDICATOR AN INSTRUMENT THAT PROVIDES AN ARTIFICIAL HORIZON NORMALLY WITH BLUE ON TOP AND BLACK ON THE BOTTOM TO HIS AMAZEMENT THE WHOLE THING WAS BLACK WE'VE LOST INSTRUMENTS THE CAPTAIN EXCLAIMED MR HEAD GLANCED AT THE AUXILIARY ATTITUDE INDICATOR WHICH HAS A SOMEWHAT DIFFERENT DISPLAY AND WHICH SHOWED THE PLANE BANKING 90 DEGREES TO THE RIGHT MY FIRST REACTION HE SAYS WAS THAT THE INSTRUMENTS HAD FAILED I COULDN'T BELIEVE WE WERE ROLLED OVER ON A KNIFE EDGE BUT THEN THE COPILOT EXCLAIMED NO REALIZING THE INSTRUMENTS WERE RIGHT AND GRABBED THE CONTROL WHEEL YANKING IT HARD LEFT TO COUNTER THE RIGHT ROLL THE CAPTAIN DISCONNECTED THE AUTOPILOT GIVING CONTROL OF THE AIRCRAFT TO THE COPILOT YOU'VE GOT IT HE SHOUTED I'VE GOT IT THE COPILOT REPLIED AT FIRST THE BIG PLANE DIDN'T RESPOND MOMENTARILY CONFUSED COPILOT MR HEAD TURNED THE CONTROL WHEEL TO THE RIGHT THE WRONG THING TO DO BUT AGAIN CHECKING THE AUXILIARY ATTITUDE INDICATOR HE TURNED THE CONTROL WHEEL BACK LEFT HE ALSO BEGAN PULLING IT BACK TOWARD HIS CHEST TO TILT ELEVATORS ON THE TAIL THAT WOULD PULL THE PLANE OUT OF ITS DIVE BUT BY THIS TIME THE JET LADEN WITH 76 TONS OF FUEL IN ADDITION TO THE CARGO WAS DIVING AT AN ACCELERATING RATE SPEED WAS INCREASING FROM 375 TO 450 AND THEN NEARLY 500 MILES PER HOUR THE PLANE BEGAN VIBRATING BADLY AN ALARM CLACKER WARNING OF SPEED BEYOND THE DESIGN LIMITS FILLED THE COCKPIT WITH STACCATO BURSTS OF SOUND I THOUGHT MY GOD THE PLANE'S GOING TO FALL APART' MR HEAD RECALLS I WANTED TO PULL THE PLANE OUT OF THAT DIVE TO REDUCE SPEED BUT I THOUGHT IF I PULL BACK TOO HARD TILTING THE ELEVATORS ON THE TAIL WIND FORCES ARE GOING TO RIP THE TAIL RIGHT OFF LOSS OF THE TAIL WOULD THROW THE PLANE TOTALLY OUT OF CONTROL MR HEAD EASED UP PULLING THE CONTROL WHEEL BACK BUT NOT QUITE SO FAR CAPT JACKSON GRABBED HIS CONTROL WHEEL CONNECTED TO THE COPILOT'S WHEEL TO STEADY IT EASY EASY EASY MR HEAD SAID THE JET KEPT PLUMMETING THROUGH BLACK SKIES WHILE THE PILOTS FOUGHT FOR CONTROL THEY SEEMED TO BE LOSING THE ALTITUDE DIAL KEPT SPINNING DOWN THE SPEED INDICATOR KEPT INCREASING WITH WIND NOISE HOWLING AROUND THE COCKPIT THE JET WAS SHUDDERING AND SHAKING EVEN MORE THERE WAS ANOTHER DANGER THE PLUMMETING JET MIGHT CRASH INTO ANOTHER AIRPLANE EMERGENCY LOSING ALTITUDE COPILOT MR HEAD RADIOED SCANNING RADAR SCREENS AN AIR TRAFFIC CONTROLLER IN WINNIPEG REPLIED NOTHING UNDERNEATH YOU NO TRAFFIC AT LAST THE PLANE RESPONDED THE NOSE GRADUALLY PULLED UP WINGS ROLLED LEVEL THE VIBRATION EASED A BIT AND THE WIND NOISE BEGAN TO FADE BUT THE CRISIS WASN'T OVER EVEN AT LEVEL FLIGHT THE JUMBO JET WAS STILL SHAKING BADLY AND TRYING TO TURN RIGHT THE PILOTS STILL FEARED IT WOULD BREAK UP IN MIDAIR THEY WANTED TO LAND FAST NEED VECTOR TO NEAREST SUITABLE AIRPORT FOR A 747 CAPT JACKSON RADIOED ROGER I CAN GIVE YOU WINNIPEG OR DULUTH THE CONTROLLER REPLIED DULUTH WAS CLOSER THE PLANE TURNED SOUTHWEST TO FLY OVER LAKE SUPERIOR BUT THE PILOTS HAD TO REDUCE SPEED TO ABOUT 270 MILES PER HOUR OR THE VIBRATION BECAME UNBEARABLE THAT MEANT DULUTH 320 MILES DISTANT WAS AN HOUR AND A QUARTER AWAY THE LONGEST HOUR AND A QUARTER IN MY LIFE COPILOT MR HEAD RECALLS ONE EVERGREEN PASSENGER ON THE FLIGHT WAS BILL GIDEON A 747 PILOT HIMSELF CAPT JACKSON SENT HIM DOWN TO THE CARGO AREA TO LOOK OUT A WINDOW AT THE RIGHT WING TO SEE IF THERE WAS ANYTHING TO EXPLAIN WHY THE PLANE PULLED TO THE RIGHT IN THE DARKNESS MR GIDEON COULD SEE NOTHING CAPT JACKSON TURNED ON LIGHTS NORMALLY USED TO SEE IF THERE IS ICE ON THE WINGS MR GIDEON MADE ANOTHER TRIP DOWN TO THE CARGO AREA AND CAME BACK TO THE COCKPIT WITH A CHILLING REPORT HE SAID WE HAD A BIG HOLE ON TOP OF THE WING THREE OR FOUR FEET SQUARE CAPT JACKSON RECALLS THE REALITY WAS WORSE MR GIDEON COULDN'T SEE UNDER THE WING WHERE PANELS THREE FEET BY 27 FEET HAD RIPPED OFF WITH A CRIPPLED RIGHT WING THE PLANE MIGHT OR MIGHT NOT MAKE IT TO DULUTH AS MINUTES TICKED BY AND MILES PASSED THE BIG 747 CONTINUED VIBRATING I'VE NEVER BEEN SO SCARED I THOUGHT THE WING WAS GOING TO COME OFF ANY MOMENT SAYS MR SMITH THE QUESTION WAS WOULD THE PLANE FALL APART FIRST OR WOULD WE LAND FIRST' SAYS CAPT JACKSON DULUTH'S LIGHTS APPEARED ON THE DARK HORIZON NOW THE PILOTS FEARED THAT DURING THE JET'S DIVE WING FLAPS MIGHT HAVE BEEN DAMAGED AND EXTENDING FAULTY FLAPS FOR LANDING MIGHT THROW THE PLANE OUT OF CONTROL CAPT JACKSON DECIDED TO EXTEND FLAPS AT 15000 FEET UNUSUALLY HIGH SO HE WOULD HAVE ALTITUDE TO RECOVER IN CASE THE JET ONCE AGAIN DIVED OUT OF CONTROL AS THE PILOTS TENSED THE WING FLAPS EXTENDED NORMALLY US CONTROLLERS WARNED OF THE EVERGREEN JET'S PLIGHT CLEARED THE SKIES AROUND DULUTH STILL SHUDDERING THE 747 APPROACHED THE FIELD IT TOUCHED DOWN THEN EVEN AS MORE PIECES FELL OFF THE WING IT BOUNCED AND ROLLED DOWN THE RUNWAY TO A SAFE STOP JAPAN AIR LINES INFORMED OF THE MISHAP POSTED GUARDS AROUND THE PLANE TO SAFEGUARD THE CASH GOLD AND ART WORK THE 30 TONS OF LOBSTER AND SEA URCHINS SPOILED MEANWHILE BOEING ENGINEERS FLEW IN FROM SEATTLE EVERGREEN OFFICIALS FROM OREGON FAA AND NTSB PEOPLE FROM CHICAGO AND WASHINGTON AND CANADIAN TRANSPORTATION SAFETY BOARD OFFICIALS FROM OTTAWA AS A BLIZZARD HIT DULUTH THEY ALL BEGAN TRYING TO FIGURE OUT WHAT HAD HAPPENED ONE THEORY WAS THAT THE STRUCTURAL DAMAGE ON THE RIGHT WING HAD CAUSED THE PLANE TO ROLL RIGHT AND DIVE BUT EXAMINATION SHOWED THE DAMAGE WAS A RESULT OF THE DIVE NOT THE CAUSE HAD THE INERTIAL NAVIGATION SYSTEM GUIDED THE JET OFF COURSE SOMEHOW CAUSING THE JET'S ROLL IT WAS REMOVED AND FLOWN TO MILWAUKEE WHERE THE UNITS ARE BUILT BY DELCO A GENERAL MOTORS CORP UNIT DELCO COULD FIND NOTHING WRONG A SPOKESMAN SAID INVESTIGATORS BEGAN FOCUSING ON THE AUTOPILOT AS THE SNOWSTORM LASHED DULUTH THE SAFETY INVESTIGATORS HUDDLED IN THE 747'S COLD COCKPIT THE AUTOPILOT SYSTEM A SERIES OF COMPUTERS THAT ACTIVATE THE PLANE'S CONTROL SURFACES ON WINGS AND TAIL CAN CHECK ITSELF THROUGH ITS OWN DIAGNOSTIC UNIT THE INVESTIGATORS RAN THE AUTOPILOT THROUGH A DIAGNOSTIC CHECK AND FOUND NOTHING WRONG THEY REMOVED THE ROLL COMPUTER THE PART OF THE AUTOPILOT THAT COMMANDS THE PLANE TO ROLL AND FLEW IT TO NORTHWEST AIRLINES' 747 MAINTENANCE BASE IN MINNEAPOLIS NORTHWEST RAN THE UNIT THROUGH A MORE SOPHISTICATED DIAGNOSTIC CHECK STILL NOTHING WRONG THE ROLL COMPUTER WAS THEN RETURNED TO THE EVERGREEN JET AND THE PLANE ITS WING REPAIRED WAS FLOWN TO BOEING'S 747 PLANT IN EVERETT WASH MEANWHILE DAVID MCNAIR A CANADIAN INVESTIGATOR WHO HAD BEEN NAMED TO HEAD THE INQUIRY BEGAN CHECKING OTHER CARRIERS HE QUICKLY LEARNED THAT BOTH AIR CANADA AND BRITISH AIRWAYS HAD RUN INTO SIMILAR PROBLEMS THOUGH NOT SO SEVERE AND HE FOUND THAT AS ONE PARTICULAR ROLL COMPUTER WAS SWITCHED FROM PLANE TO PLANE AT AIR CANADA DURING MAINTENANCE THAT COMPUTER HAD CAUSED THREE UNCOMMANDED ROLLS IN VARIOUS AIRPLANES IF THE PROBLEM FOLLOWS THE ROLL COMPUTER AROUND I WOULD SUSPECT THE PROBLEM MUST BE IN THE ROLL COMPUTER MR MCNAIR SAYS INVESTIGATORS ALSO CHECKED THE MAINTENANCE HISTORY OF THE EVERGREEN ROLL COMPUTER THEY FOUND THAT THAT PARTICULAR UNIT HAD BEEN REPAIRED THREE TIMES TWICE FOR CAUSING UNCOMMANDED ROLLS THAT SEEMED TO CONFIRM MR MCNAIR'S THEORY DESPITE THIS PROGRESS INVESTIGATORS NOW WERE STUMPED WE COULDN'T FIGURE OUT WHAT WAS WRONG WITH THE ROLL COMPUTER MR MCNAIR SAYS AT THIS POINT A BOEING ENGINEER DEVELOPED A NEW THEORY WHEN THE COMPUTER COMMANDS THE AILERONS FLAPLIKE DEVICES ON THE REAR OF THE WINGS TO MOVE UP OR DOWN THAT CAUSES THE PLANE TO ROLL ONE WAY OR THE OTHER BUT IF FOR SOME REASON THE COMPUTER'S COMMAND DIDN'T REACH THE AILERONS COULD THE AILERONS DRIFT OUT OF CONTROL MOVING SO MUCH THAT THEY GRADUALLY ROLLED THE PLANE TOO FAR TO TEST THAT THEORY ENGINEERS AT BOEING DELIBERATELY INTERRUPTED THE COMPUTER COMMAND TO THE AILERONS ON THE EVERGREEN PLANE ON THE GROUND AND WATCHED THEM DRIFT OUT OF CONTROL THEY COMPARED THE RESULTS OF THAT TEST WITH DATA FROM EVERGREEN'S BLACK BOX FLIGHT RECORDER WHICH HAD RECORDED THE EVERGREEN JET'S ROLL MR PHILLIPS OF THE SAFETY BOARD IN WASHINGTON SAYS THE DATA FROM BOEING'S TEST AND FROM THE EVERGREEN FLIGHT RECORDER MATCHED ALMOST EXACTLY WHAT CAUSED THE ROLL COMPUTER'S COMMAND MECHANISM TO FAIL AT THIS POINT EXPERTS DISAGREE BOEING ENGINEERS BELIEVE A BROKEN WIRE FOUND BETWEEN THE COMPUTER AND THE AILERONS WAS THE CULPRIT BUT NTSB INVESTIGATORS SAY THAT WIRE WAS BROKEN WHEN EQUIPMENT WAS REMOVED FROM THE JET FOLLOWING THE ACCIDENT THE EVERGREEN ROLL COMPUTER ITSELF WAS TAKEN TO A HONEYWELL PLANT WHERE HONEYWELL PUT IT THOUGH HUNDREDS OF ELECTRONIC TESTS HONEYWELL ALSO PUT THE COMPUTER THROUGH A SHAKE AND BAKE TEST VIBRATING IT FOR HOURS AND SUBJECTING IT TO EXTREME HIGHS AND LOWS OF TEMPERATURE TRYING TO PINPOINT A PROBLEM THE TESTS FAILED TO DO THAT TO THIS DAY INVESTIGATORS ARE UNABLE TO AGREE ON THE SOURCE OF THE MYSTERIOUS ELECTRONIC FAULT A HONEYWELL SPOKESMAN SAYS THE COMPANY DID FIND A PROBLEM IN THE COMPUTER THAT TRIGGERED THE ROLL OF THE BRITISH AIRWAYS 747 IN 1989 AND IS DEVELOPING FIXES BUT THE SPOKESMAN CONFIRMS THAT HONEYWELL CAN'T FIND ANYTHING WRONG WITH THE ROLL COMPUTER FROM THE EVERGREEN JET ENGINEERS SAY THE ELECTRONIC FAULTS CAN BE VERY DIFFICULT TO IDENTIFY BECAUSE THEY MAY BE TRANSIENT LASTING ONLY A FEW SECONDS OR MOMENTS IT'S LIKE WHEN YOU'RE SICK YOU DECIDE TO GO TO THE DOCTOR BUT BY THE TIME YOU GET THERE YOU FEEL OK AGAIN SAYS ONE IN THE MEANTIME SOME AIRLINES ARE JUNKING ANY ROLL COMPUTERS THAT CAUSE AN UNCOMMANDED ROLL AIRLINES ARE ALSO WARNING THEIR 747 PILOTS TO SCAN THEIR INSTRUMENTS ESPECIALLY THEIR ARTIFICIAL HORIZON AS OFTEN AS POSSIBLE THAT WAY IF AN AUTOPILOT QUITS DOING ITS JOB A REAL PILOT CAN GRAB THE CONTROLS SEE RELATED LETTER LETTERS TO THE EDITOR STAY AWAKE IN THE COCKPIT WSJ JUNE 8 1993 9304260004 YY93 MM06 9306070179 930607 INTERNATIONAL MEXICAN DRUG PROBLEM TAKES NEW TACK GROWTH IN DOMESTIC USE OF HARD STUFF IS PROMPTING CONCERN BY MATT MOFFETT STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY THE RECENT DRUGRELATED MURDER OF A ROMAN CATHOLIC CARDINAL WAS SADLY REMINISCENT OF THE DRUGLINKED VIOLENCE LONG ENDURED BY MEXICO'S NEIGHBORS IN SOUTH AMERICA LESS WIDELY NOTED THOUGH NO LESS DISTURBING IS THE WAY MEXICO IS BEGINNING TO IMITATE THE NARCOTICS CONSUMPTION HABITS OF ITS NEIGHBOR TO THE NORTH THE NUMBER OF DRUG ABUSERS IN MEXICO IS STILL RELATIVELY SMALL BUT THE USE OF HARD DRUGS SUCH AS COCAINE IS GROWING AT A RATE THAT RAISES PROFOUND CONCERN AMONG EXPERTS IN A SURVEY OF 44 HEALTH AND JUSTICE INSTITUTIONS BY THE MEXICAN PSYCHIATRIC INSTITUTE THE PERCENTAGE OF ALL DRUG USERS WHO REPORTED RECENT CONSUMPTION OF COCAINE GREW TO 95 LAST YEAR FROM ONLY 14 IN 1989 AT A DRUG CLINIC IN A TUMBLEDOWN BLOCK BUILDING IN THE MEXICAN CAPITAL'S WORKINGCLASS VENUSTIANO CARRANZA DISTRICT DR PEDRO TORRES CHAVEZ TREATED 40 COCAINE ABUSERS LAST YEAR COMPARED WITH ONLY ONE OR TWO THE YEAR BEFORE THIS PROBLEM CAME FROM NOWHERE HE SAYS THE RAVAGES OF COCAINE HAVEN'T SPARED THE WEALTHY FORMER US FIRST LADY BETTY FORD TRAVELED TO THE PACIFIC PORT OF MAZATLAN LAST MONTH TO INAUGURATE THE OCEANICA INSTITUTE AN ADDICTIONTREATMENT FACILITY THAT HAS A CONSULTING AGREEMENT WITH THE CALIFORNIA CENTER BEARING HER NAME A FIVEWEEK OCEANICA PROGRAM COSTS 10000 BUT THE 36BED CENTER IS GETTING MORE APPLICANTS THAN IT CAN HANDLE THE EMERGING ABUSE SITUATION IS AN ESPECIALLY BITTER BLOW FOR A COUNTRY THAT HAD LONG MAINTAINED THAT THE ROOT OF THE DRUGTRAFFICKING PROBLEM WAS UNBRIDLED DEMAND IN THE US THE ANTICORRUPTION CZAR OF THE LAST MEXICAN ADMINISTRATION BLAMED THE MULTIBILLIONDOLLAR NARCOTICS INDUSTRY LARGELY ON AMERICAN SOCIETY'S MORAL PSYCHOLOGICAL AND FAMILIAL DEFORMITIES BUT THAT ATTITUDE IS BEING REASSESSED AS MEXICAN ADDICTS MOVE BEYOND THEIR TRADITIONAL DRUGS OF CHOICE MARIJUANA AND INHALANTS SUCH AS RUBBER CEMENT COCAINE IS NO LONGER SOMEONE ELSE'S PROBLEM SAYS RAFAEL GUARNEROS A MEXICO CITY ASSEMBLYMAN WHO RECENTLY HELD HEARINGS ON DRUG ABUSE IT'S LITTLE SOLACE BUT MEXICO CLEARLY ISN'T THE ONLY LATIN AMERICAN COUNTRY TRYING TO DEAL WITH THE PROBLEM AN ORGANIZATION OF AMERICAN STATES COMMISSION RECENTLY FOUND THAT COCAINE USE HAD RISEN OVER THE PAST YEAR IN FIVE OF SEVEN CENTRAL AMERICAN COUNTRIES SURVEYED WE HAVE HEARD FROM MANY OF OUR GOVERNMENTS THAT DRUG USE IS ON THE RISE IN LATIN AMERICA SAID ANNA CHISMAN DEMAND REDUCTION SPECIALIST ANALYSTS ARE STILL GROPING FOR A REASON THAT EXPLAINS WHY LATIN AMERICA AFTER YEARS OF SERVING ALMOST EXCLUSIVELY AS A CONDUIT FOR HARD DRUGS IS SUDDENLY BECOMING A CONSUMER AS WELL SOME SUGGEST THAT US DRUG INTERDICTION EFFORTS ARE FORCING TRAFFICKERS TO RECHANNEL SOME COCAINE TO DOMESTIC MARKETS OTHERS SAY THE POPULARIZATION OF COCAINE IS AN UNINTENDED CONSEQUENCE OF MOVES BY SEVERAL LATIN AMERICAN LEADERS TO OPEN UP THEIR ECONOMIES AND CULTURES TO THE WORLD ALL I KNOW IS THAT ONE DAY LAST YEAR COCAINE WAS JUST THERE ON THE STREET SAYS ALFREDO UGARTE A VENDOR IN THE TEEMING MARKETS OF THE IZTACALCO NEIGHBORHOOD ABOUT TWO DOZEN TIMES IN A SIXMONTH PERIOD MR UGARTE PAID THE GOING RATE OF ABOUT 50 FOR A GRAM OF COCAINE MR UGARTE DIDN'T REALIZE HOW STRONG THE DRUG WAS UNTIL ONE DAY WHEN HE CAUGHT A WHIFF OF THE BILLFOLD IN WHICH HE HAD RECENTLY STORED COCAINE THE RESIDUE CAUSED HIM TO SHAKE UNCONTROLLABLY HE ENTERED A TREATMENT CENTER THAT DAY MEXICO IS ESPECIALLY VULNERABLE BECAUSE OF THE EXTREME YOUTH OF ITS POPULATION HALF OF WHICH IS UNDER THE AGE OF 20 ANTONIO FRIAS RAMIREZ WHO RUNS A HOME FOR ADOLESCENT ADDICTS IN THE CRIMERIDDEN BARRIO OF TEPITO SAYS HIS CHARGES HAVE RECENTLY REPORTED THE AVAILABILITY OF CRACK INEXPENSIVE AND HIGHLY ADDICTIVE SMOKABLE COCAINE UNTIL A YEAR AGO THESE WERE THINGS WE ONLY SAW IN IMPORTED MOVIES SAID MR FRIAS RAMIREZ WHAT CAN WE DO LIKE THEIR NEIGHBORS TO THE NORTH MEXICANS ARE FINDING THE ANSWERS ELUSIVE AT THE MEXICO CITY ASSEMBLY HEARINGS LAST OCTOBER EXPERTS PRESENTED AN ARRAY OF PROPOSALS THAT INCLUDED EVERYTHING FROM LEGALIZING DRUGS TO PLACING WARNING SIGNS IN FRONT OF THE HOMES OF KNOWN TRAFFICKERS WHILE ONE PSYCHOLOGIST SUGGESTED A NATIONAL EDUCATION PUSH BEGINNING IN GRADE SCHOOL ANOTHER SPECIALIST DISPARAGED PSEUDOEDUCATIVE ACTIVITIES DR MANUEL PALACIOS RAMOS WHO RUNS A TREATMENT CENTER COULD ONLY REMINISCE ABOUT WHEN TIMES WERE LESS COMPLICATED IN OUR FATHER'S TIMES THE FAMILY PROTECTED ITS MEMBERS HE SAID NOW AT THE END OF THE MILLENNIUM IT'S INCAPABLE OF GIVING AN ANSWER TO THE NEEDS OF MAN AS IT PREVIOUSLY DID 9306070178 930607 MARKETING & MEDIA PHILIP MORRIS COS EXTENDS PRICE CUTS ON MARLBORO LINE BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PHILIP MORRIS COS EXTENDED BY SIX WEEKS THE AGGRESSIVE PRICECUTTING PROGRAM FOR ITS MARLBORO CIGARETTES ESSENTIALLY DOUBLING THE LENGTH OF TIME IN WHICH THE NO 1 BRAND IS SELLING AT A DISCOUNT OF 40 CENTS A PACK RETAILERS AND WHOLESALERS REPORT BRISK SALES OF MARLBOROS SINCE THE PROMOTION STARTED LATE LAST MONTH BUT SOME TOBACCO EXPERTS BELIEVE THAT SMOKERS AND RETAILERS ARE SIMPLY STOCKING UP ON CIGARETTES TO TAKE ADVANTAGE OF THE TEMPORARY PRICE CUT RATHER THAN FUNDAMENTALLY BOOSTING MARLBORO BUSINESS MARLBORO IS CANNIBALIZING ITS FUTURE SAID GARY BLACK AN ANALYST WITH SANFORD C BERNSTEIN & CO THE PROMOTION WHICH HAS DECORATED THE NATION'S CONVENIENCE STORES AND TOBACCO SHOPS WITH NEW MARLBORO SALE SIGNS IS PROVING TO BE A LOGISTICAL NIGHTMARE FOR PHILIP MORRIS THE COMPANY WAS FORCED TO HIRE 2500 TEMPORARY WORKERS DUBBED THE MARLBORO POLICE IN THE TOBACCO TRADE TO MAKE SURE THAT RETAILERS PASS ON THE PRICE CUTS TO CONSUMERS RATHER THAN POCKET THE REBATES FROM PHILIP MORRIS ROB HEUBERMAN GENERAL MANAGER OF STARKMAN DISTRIBUTORS IN ATLANTIC CITY NJ SAID THAT PHILIP MORRIS IS USING THE PRICE CUTS TO BUILD HUGE INVENTORIES AT RETAIL STORES AND IN SMOKERS' GLOVE COMPARTMENTS IN THE PAST CIGARETTE COMPANIES INFLATED SALES BY LOADING UP WHOLESALE DISTRIBUTORS RATHER THAN THE RETAIL CHANNEL IN A PRACTICE KNOWN AS TRADE LOADING NOW WHAT WE ARE REALLY LOOKING AT IS A NEW APPROACH TO LOADING MR HEUBERMAN SAID BUT THE RAMPANT DISCOUNTING IS SIMPLY TRAINING CONSUMERS TO BUY WHATEVER BRAND IS ON SALE RATHER THAN CEMENTING AFFECTION FOR MARLBORO MR HEUBERMAN SAID ONCE THE PROMOTION IS GONE INTEREST IN THE PRODUCT DISAPPEARS HE ADDED THE CIGARETTE MANUFACTURERS ARE IN AN UNBELIEVABLE STATE OF DENIAL IF THEY THINK THERE IS ANYTHING THEY CAN DO TO STOP THE MOVE TO LOWPRICE CIGARETTES WHILE THE TOBACCO COMPANIES HAVE BEEN ATTEMPTING TO RAISE PRICES ON CHEAPER CIGARETTES PHILIP MORRIS'S LATEST MOVE EXTENDING THE MARLBORO DISCOUNTS UNTIL AUG 8 IS A REMINDER THAT THE PRICE WAR IS RAGING UNABATED AT THE UPPER END OF THE MARKET THE COMPANY'S BIGGEST RIVAL RJR NABISCO HOLDINGS CORP MATCHED THE EARLIER MOVE AND SAID IT WILL RESPOND TO THE LATEST PHILIP MORRIS ANNOUNCEMENT TOBACCO EXPERTS SAID THE EXTENSION OF MARLBORO'S 20 DISCOUNT WILL MAKE IT EVEN MORE DIFFICULT FOR PHILIP MORRIS TO RAISE PRICES BACK UP AGAIN I DON'T THINK IT WILL EVER EXPIRE DAVID GOLDMAN AN ANALYST WITH OPPENHEIMER & CO SAID OF THE MARLBORO PROMOTION YOU HAVEN'T SEEN THE LAST OF IT OR THE WORST OF IT HE PREDICTED THAT BY THE END OF THE YEAR CIGARETTE COMPANIES WILL BE FORCED TO SLASH PRICES BY AN ADDITIONAL 20 CENTS A PACK 9306070177 930607 REVIEW & OUTLOOK EDITORIAL TEXAS TREMORS THE WHITE HOUSE LINE HAS BEEN TO RESIST ANY SUGGESTION THAT THE PRESIDENT CAN BE LINKED TO THE LANDSLIDE DEFEAT OF SENATOR BOB KRUEGER IN TEXAS SATURDAY THAT'S FUNNY CLINTON STRATEGIST PAUL BEGALA AND OTHER AIDES SPENT MUCH OF MAY TRYING TO SALVAGE THE DOOMED KRUEGER CAMPAIGN HE ENDED UP WITH ONLY 32 IF THE WHITE HOUSE IS TO LEARN FROM ITS RECENT MISTAKES IT SHULD PONDER THE MEANING OF A MAJOR DEMOCRATIC DEFEAT IN THE NATION'S THIRD LARGEST STATE BOB KRUEGER DID EVERYTHING POSSIBLE TO DISTANCE HIMSELF FROM THE CLINTON ECONOMIC PROGRAM AND RUN AS A MODERATE HIS NEWSPAPER ADS WENT SO FAR AS TO QUOTE RUSH LIMBAUGH IN AN ATTEMPT TO IMPLY THAT THE CONSERVATIVE TALK SHOW HOST SUPPORTED HIM IN FACT MR LIMBAUGH ENDORSED REPUBLICAN KAY BAILEY HUTCHISON SHE POUNDED HOME THE THEME THAT BOB KRUEGER COULDN'T BE TRUSTED TO BE A MODERATE JUST BECAUSE HE TALKED LIKE ONE LOOK AT BILL CLINTON HIS PARTY'S PRESIDENT SHE TOLD AUDIENCES HE SAID ONE THING TO GET ELECTED AND IS DOING COMPLETELY THE OPPOSITE IT'S A CHARGE THAT'S STICKING AND HURTING A MASONDIXON POLL LAST WEEK FOUND PRESIDENT CLINTON HAS A REMARKABLE 74 FAIRPOOR RATING IN TEXAS MS HUTCHISON BY HER OWN ACCOUNT REDUCED HER CAMPAIGN TO ONE ISSUE ABSOLUTELY FOCUSING ON REDUCING THE DEFICIT NOT BY RAISING TAXES BUT BY CUTTING SPENDING THE KRUEGER DEFEAT SHOULD SEND SHIVERS DOWN THE SPINES OF DEMOCRATS WHO WON LAST YEAR BECAUSE VOTERS BOUGHT THEIR MODERATE MESSAGE THE POLITICAL WIPEOUT OF BOB KRUEGER SHOULD ALSO WARN DEMOCRATS THAT THEIR MINORITY BASE IS VULNERABLE VOTERICH TEXAS IS TURNING INTO A GOP STRONGHOLD PARTLY BECAUSE MANY HISPANIC VOTERS ARE NOW LEERY OF NATIONAL DEMOCRATS MS HUTCHISON PROBABLY WON THE HISPANIC VOTE WHICH A DECADE AGO VOTED 4TO1 DEMOCRATIC TODAY NEARLY A THIRD OF HISPANIC IDENTIFY WITH THE GOP AND LAST YEAR SAN ANTONIO ELECTED HENRY BONILLA AN HISPANIC REPUBLICAN TO CONGRESS THIS SHIFT AMONG HISPANICS ISN'T LIMITED TO TEXAS POLLS ON NEXT TUESDAY'S LOS ANGELES MAYOR'S RACE SHOW REPUBLICAN RICHARD RIORDAN WINNING ABOUT ONETHIRD OF HISPANICS THE TEXAS RESULTS ALSO SIGNAL THAT BACKING A BIG GOVERNMENT HEALTH CARE SOLUTION MAY BE A POLITICAL DEAD END MR BEGALA FLEW DOWN TO TEXAS AND MADE SENATOR KRUEGER'S SUPPORT OF GOVERNMENTMANAGED HEALTH CARE HIS MAIN ISSUE IN THE FINAL WEEKS THE IDEA FLOPPED MR CLINTON HAS BEEN TRYING TO INCH TOWARD THE POLITICAL CENTER IN RECENT DAYS THE TEXAS RESULTS SHOULD CONVINCE HIM THAT HIS SURVIVAL DEPENDS ON TURNING THAT TENDENCY INTO A HEADLONG DASH THE ELECTION OF MS HUTCHISON GIVES THE REPUBLICANS 44 SENATE SEATS MAKING IT FAR MORE LIKELY THEY CAN SUSTAIN FILIBUSTERS OR FORM COALITIONS WITH CENTRIST AND CONSERVATIVE DEMOCRATS OPPOSED TO LIBERAL OVERREACHING THE WHITE HOUSE MAY WANT PEOPLE TO THINK THAT IT DOESN'T CONSIDER THE KRUEGER DEFEAT MEANINGFUL BUT BILL CLINTON DOESN'T HAVE TO RUN UNTIL 1996 THERE ARE 16 DEMOCRATIC SENATORS WHO LOOK AT THE TEXAS RESULTS AND ARE REMINDED THAT THEY WILL BE UP FOR REELECTION IN 17 SHORT MONTHS 9306070176 930607 WHO'S NEWS AS HARDDRIVING WARD STEERS CYPRUS BUYING AMAX IS JUST AN OPENING TURN BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL DENVER FOR HIS 60TH BIRTHDAY THIS MONTH MILTON H WARD'S WIFE ADELE BOUGHT HIM A PAINTING TITLED HE TOILS AT EIGHTY WHICH DEPICTS A STOOPED AND AGED LABORER MR WARD CHAIRMAN OF CYPRUS MINERALS CO IDENTIFIES WITH THE WORKER I'LL BE VERY IRRITATED IF I'M NOT DOING WHAT I'M DOING NOW AT 80 OR 90 HE SAYS FOR THOSE WHO KNOW MR WARD IT'S NOT HARD TO BELIEVE THAT HE MEANS IT THIS IS A MAN WHO SLEEPS ONLY THREE HOURS A NIGHT AND WHO ADVISED HIS CHILDREN THAT THE WAY TO GET AHEAD IS TO WORK HARDER THAN ANYONE ELSE WHICH IS PRETTY MUCH WHAT HE HAS DONE SINCE TAKING THE HELM AT THE COPPER AND COAL MINING COMPANY A YEAR AGO ENDING A REVOLVING DOOR TO THE EXECUTIVE SUITE THAT SAW THREE CHIEF EXECUTIVES DEPART IN A 12MONTH SPAN SINCE THEN HE HAS SLASHED COSTS INVESTED HUNDREDS OF MILLIONS OF DOLLARS IN NEW EQUIPMENT SCALED DOWN STAFF AND SET CYPRUS ON A MISSION TO BECOME A WORLDCLASS MINING COMPANY ON THE LEVEL OF LONDONBASED RTZ CORP HE TOOK A BIG STEP IN THAT DIRECTION LAST MONTH BY AGREEING TO BUY AMAX INC FOR 14 BILLION IN STOCK THE ASSUMPTION OF 12 BILLION IN AMAX DEBT AND THE CONVERSION OF 220 MILLION OF AMAX PREFERRED STOCK TO PREFERRED IN CYPRUSAMAX WHEN THE ACQUISITION IS COMPLETED SOMETIME IN THE THIRD QUARTER CYPRUSAMAX WILL BE THE SECONDLARGEST PRODUCER OF COPPER AND COAL IN THE NATION WITH ANNUAL REVENUE OF ABOUT 28 BILLION AND ASSETS OF ABOUT 5 BILLION AND MR WARD WILL BE ON THE TOP OF THIS MINING HEAP AS COCHAIRMAN CHIEF EXECUTIVE OFFICER AND PRESIDENT ANALYSTS EXPECTED MR WARD A HIGHLY RESPECTED VETERAN MINING EXECUTIVE TO SHAKE THINGS UP WHEN HE TOOK OVER THE DRIFTING MINING CONCERN LAST YEAR BUT THEY HAVE BEEN SURPRISED AT HOW QUICKLY HE HAS MOVED MILT'S IN A HURRY SAYS VIC LAZAROVICI ANALYST AT SG WARBURG & CO HE'S NOT A PATIENT MAN THAT HARDDRIVING ATTITUDE HAS AN IRRITATING SIDE TOO SAY THOSE WHO WORK WITH HIM HE DOESN'T LET OTHERS COMPLETE SENTENCES HE GETS UP TO WORK AT HIS DESK IN THE MIDST OF MEETINGS IN HIS OFFICE AND HE SETS THE AGENDA FOR DISCUSSIONS WITH ANALYSTS WHO DESPAIR OF NOT BEING ABLE TO GET A WORD IN EDGEWISE EVEN MRS WARD AN ARTIST AND ART COLLECTOR SAYS SHE GETS IRRITATED WHEN HE WON'T CONCENTRATE ON NECESSARY BUT MUNDANE CONVERSATION AT HOME SOMETIMES HE JUST ISN'T LISTENING SHE SAYS ANALYSTS SAY SOME EMPLOYEES AT HIS PREVIOUS COMPANY FREEPORT MCMORAN INC WERE RELIEVED WHEN MR WARD LEFT HE KEPT DRIVING THEM TO ACHIEVE THINGS QUICKER AND AT LOWER COST THAN THEY SAID THEY COULD DO SAYS MR LAZAROVICI BUT FEW QUIBBLE WITH HIS RESULTS HE CUT 40 MILLION OUT OF ANNUAL COSTS AT CYPRUS IN HIS FIRST YEAR SOLD A NUMBER OF THE COMPANY'S NONCORE AND UNDERPERFORMING OPERATIONS AND SET OUT AN INVESTMENT PLAN AIMED AT CUTTING AS MUCH AS 20 CENTS A POUND OR ABOUT 20 OUT OF THE COST OF COPPER WHEN HE TOOK THE HELM AT CYRPUS HE IMMEDIATELY TOOK ACTIONS THAT WERE NECESSARY AND LONG OVERDUE SAYS VAHID FAHTI ANALYST AT KEMPER SECURITIES INC AFTER GETTING HIS ENGINEERING DEGREE AT THE UNIVERSITY OF ALABAMA MR WARD STARTED HIS MINING CAREER AS A COMMON LABORER DRILLING AND MUCKING ORE 1600 FEET UNDERGROUND AT MAGMA COPPER CO'S SAN MANUEL MINE IN ARIZONA AFTER A SERIES OF QUICK PROMOTIONS HE WAS HIRED TO SUPERVISE A URANIUM MINE FOR KERRMCGEE CORP AND GIVEN A CLEAR MANDATE DOUBLE PRODUCTION IN SIX MONTHS OR BE FIRED HE SUCCEEDED HE SAYS BY LISTENING TO THE MINERS WHO KNEW WHAT NEEDED TO BE DONE BUT HAD NEVER BEEN ASKED IT WAS MY FIRST INTRODUCTION TO EMPLOYEE INVOLVEMENT HE SAYS THE WAY WE SOLVED PROBLEMS WAS NOT GOING TO GET SOME OUTSIDE CONSULTANT TO HELP ME WE GOT IT SOLVED BY THE WORKERS AS HE BUILT A REPUTATION AS A RESULTSGETTER MR WARD PROGRESSED THROUGH JOBS AT HOMESTAKE MINING CO RANCHERS EXPLORATION & DEVELOPMENT CORP AND THEN TO FREEPORTMCMORAN WHERE HE WAS EVENTUALLY NAMED PRESIDENT HIS PLANS FOR CYPRUSAMAX INCLUDE IMPROVING THE COPPER DIVISION WITH BETTER DEPOSITS AND MINES CONTINUING TO CUT COSTS HE THINKS 100 MILLION CAN BE SAVED IN SYNERGIES FROM THE ACQUISITION INCREASING THE COMPANY'S SHARE OF THE COAL MARKET AND BUILDING A GOLD BUSINESS THROUGH THE COMPANY'S 40 OWNERSHIP OF AMAX GOLD INC WHEN THE GUN GOES OFF WE'LL HAVE OUR PROGRAM IN PLACE AND SHOW THE WORLD THAT THIS WAS A MARVELOUS ACQUISITION HE SAYS BUT HE HINTS THAT IT WON'T BE HIS LAST BIG MOVE AT CYPRUS THIS WILL BE THE ROLE MODEL FOR THE GROWTH STEPS WE WILL TAKE IN THE FUTURE HE SAYS 9306070175 930607 DEL COMPLETES DEBT REFINANCE FARMINGDALE NY DEL LABORATORIES INC SAID IT COMPLETED A REFINANCING OF ITS LONGTERM DEBT TO 40 MILLION FROM THE PREVIOUS 35 MILLION AT A LOWER INTEREST RATE PROCEEDS WILL BE USED TO REPAY THE PRIOR LOAN AS WELL AS A 39 MILLION PREPAYMENT CHARGE AND TO FINANCE WORKING CAPITAL DEL MAKES NAILCARE PRODUCTS HAIRCARE AND COSMETIC PRODUCTS FRAGRANCES AND PHARMACEUTICALS 9306070174 930607 CIRCUIT CITY MAY SALES ROSE RICHMOND VA CIRCUIT CITY STORES INC SAID SALES FOR MAY ROSE 24 TO 2887 MILLION FROM 232 MILLION WHILE SAMESTORE SALES OR SALES IN STORES OPEN AT LEAST A YEAR ROSE 9 FROM MAY 1992 FOR THE FISCAL FIRST QUARTER ENDED MAY 31 TOTAL SALES ALSO ROSE 24 TO 7985 MILLION FROM 6443 MILLION AND SAMESTORE SALES ALSO ROSE 9 9306070173 930607 TECHNOLOGY MYLAN GENERIC DRUG IS APPROVED PITTSBURGH MYLAN LABORATORIES INC SAID THE FOOD AND DRUG ADMINISTRATION CLEARED IT TO MANUFACTURE AND MARKET 400MILLIGRAM TOLMETIN SODIUM CAPSULES THE NONSTEROIDAL ANTIINFLAMMATORY DRUG IS THE GENERIC VERSION OF TOLECTIN DS MANUFACTURED BY JOHNSON & JOHNSON'S MCNEIL PHARMACEUTICAL UNIT MYLAN SAID THE DRUG IS USED IN THE TREATMENT OF RHEUMATOID ARTHRITIS AND OSTEOARTHRITIS 9306070172 930607 TANDY CORP SALES ROSE IN MAY FORT WORTH TEXAS TANDY CORP SAID US SALES IN MAY AT STORES OPEN FOR AT LEAST A YEAR ROSE 5 FROM A YEAR EARLIER THE ELECTRONICS RETAILER SAID TOTAL SALES FOR THE MONTH INCREASED 14 TO 2688 MILLION FROM 2352 MILLION 9306070171 930607 WOLOHAN LUMBER'S MAY SALES SAGINAW MICH WOLOHAN LUMBER CO SAID ITS MAY SALES INCREASED 02 TO 38254000 FROM 38166000 FOR THE YEAREARLIER PERIOD COMPARABLESTORE SALES DECREASED 3 AND CONSUMER SALES FELL 4 THE COMPANY SAID BUT PROFESSIONALCONTRACTOR SALES ROSE 7 FIVEMONTH SALES GREW 1 FROM THE YEARAGO PERIOD TO 130877000 AND COMPARABLESTORE SALES DROPPED 1 WOLOHAN LUMBER OPERATES 53 LUMBER AND BUILDINGMATERIAL RETAIL STORES IN SEVEN STATES 9306070170 930607 POTOMAC ELECTRIC'S RATE BID WASHINGTON POTOMAC ELECTRIC POWER CO SAID IT FILED FOR A 726 MILLION OR 108 RATE INCREASE IN THE DISTRICT OF COLUMBIA TO BECOME EFFECTIVE IN EARLY 1994 THE INCREASE IS SOUGHT TO COVER RISING COSTS THE UTILITY ADDED 9306070169 930607 INTERNATIONAL GOVERNING CRISIS HAS DEEPENED IN CAMBODIA BY RAPHAEL PURA STAFF REPORTER OF THE WALL STREET JOURNAL PHNOM PENH CAMBODIA'S POSTELECTION LEADERSHIP CRISIS HAS DEEPENED AFTER AN ABORTIVE ATTEMPT TO UNITE THE COUNTRY'S TWO MAIN POLITICAL FACTIONS UNDER PRINCE NORODOM SIHANOUK A HASTILY ARRANGED TRANSITIONAL GOVERNMENT PROCLAIMED BY PRINCE SIHANOUK FELL APART IN HOURS LAST WEEK WHEN THE WINNER OF THE UNITED NATIONSRUN ELECTION FUNCINPEC BALKED AT BEING DRIVEN INTO A REGIME THAT GAVE EQUAL POWER TO ITS ARCHRIVAL THE CAMBODIAN PEOPLE'S PARTY OF INCUMBENT PRIME MINISTER HUN SEN THE ACRIMONIOUS RECRIMINATIONS THAT FOLLOWED HAVE CAST A PALL OVER THE COUNTRY'S JUSTCOMPLETED ELECTION WHICH DREW A TURNOUT OF ALMOST 90 OF REGISTERED VOTERS AND HAS BEEN HAILED AS THE FREEST IN CAMBODIA'S HISTORY INSTEAD OF RECONCILING CAMBODIA'S MAIN FACTIONS PRINCE SIHANOUK'S ILLFATED GAMBIT HAS SET OFF A POTENTIALLY DANGEROUS POWER STRUGGLE THE TUSSLE PITS THE PRINCE AND HUN SEN'S HEAVILY ARMED STATE OF CAMBODIA REGIME KNOWN AS SOC AGAINST PRINCE SIHANOUK'S OWN SON PRINCE NORODOM RANARIDDH THE PRESIDENT OF FUNCINPEC PRINCE RANARIDDH IS IN BANGKOK HAVING DECLINED TO RETURN TO PHNOM PENH TO MEET WITH HIS FATHER PRINCE RANARIDDH SAID IN A COMMUNIQUE THAT HE'D CONSIDER JOINING A SIHANOUKLED INTERIM GOVERNMENT ONLY IF IT HONORED FUNCINPEC'S ELECTORAL VICTORY AND EXCLUDED SOC LEADERS SUCH AS HUN SEN WHO HE ACCUSED OF BEING PERSONALLY RESPONSIBLE FOR ACTS OF VIOLENCE AND KILLINGS AIMED AT FUNCINPEC LEADERS THE FAILED SIHANOUK INITIATIVE LEAVES HUN SEN'S ELECTORALLY DEFEATED SOC REGIME IN POWER WITH NO LEGAL OR POLITICAL MANDATE AND IT PUT INTO JEOPARDY THE RESULTS OF THE ELECTION IN WHICH FUNCINPEC WON 453 OF THE VOTE AND AT LEAST A PLURALITY OF 120 SEATS IN THE CONSTITUENT ASSEMBLY THE DEVELOPMENTS HINT AT HOW EASILY THE COUNTRY COULD SLIP BACK INTO A PATTERN OF AUTHORITARIAN RULE THAT HAS CHARACTERIZED CAMBODIA SINCE INDEPENDENCE IN 1953 A MAJOR CONCERN SAY POLITICAL ANALYSTS IS THAT THE COUNTRY MAY SPIN OUT OF THE CONTROL OF THE UNITED NATIONS TRANSITIONAL AUTHORITY IN CAMBODIA OR UNTAC UNTAC'S ROLE IS TO IMPLEMENT A 1991 PEACE ACCORD AMONG CAMBODIA'S MAIN FACTIONS AND INCLUDES OVERSEEING THE ELECTION OF A CONSTITUENT ASSEMBLY THE DRAWING UP OF A NEW CONSTITUTION AND THE INSTALLATION OF A LEGITIMATE NEW GOVERNMENT BUT IN THE INTERIM PERIOD BETWEEN THE ELECTION AND THE CREATION OF A NEW REGIME EXPECTED TO LAST UNTIL AUGUST RESPONSIBILITY FOR CAMBODIA'S DAYTODAY MANAGEMENT HAS BECOME A BONE OF CONTENTION THE UN WASN'T CONSULTED IN ADVANCE ABOUT PRINCE SIHANOUK'S COALITION PLAN PRINCE SIHANOUK OVER THE WEEKEND ATTACKED UNTAC AND UNNAMED FOREIGN POWERS FOR BIAS DURING THE ELECTION AND FOR UNDERMINING HIS ATTEMPT TO RETURN TO POWER 23 YEARS AFTER BEING DEPOSED IN A COUP PUBLICLY UNTAC OFFICIALS HAVE AVOIDED CRITICIZING PRINCE SIHANOUK BECAUSE MANY STILL CONSIDER HIM ESSENTIAL TO ANY EVENTUAL POLITICAL SETTLEMENT POLITICAL ANALYSTS ARE NOW WATCHING FOR SIGNS OF A THAW BETWEEN PRINCE SIHANOUK AND HIS SON THAT MIGHT ENABLE FUNCINPEC AND THE CPP TO EVENTUALLY STRIKE A DEAL 9306070168 930607 KLM'S MAY TRAFFIC ROSE 11 AMSTERDAM KLM ROYAL DUTCH AIRLINES SAID ITS TOTAL AIRLINE TRAFFIC IN MAY ROSE 11 FROM A YEAR EARLIER AND MORE OF ITS INCREASED CAPACITY WAS USED THAT MAY BE GOOD NEWS FOR THE DUTCH FLAG CARRIER WHICH EARLIER LAST WEEK ANNOUNCED A NET LOSS OF 562 MILLION GUILDERS 313 MILLION ON TOTAL REVENUE OF 822 BILLION GUILDERS FOR THE YEAR ENDED MARCH 31 THE 38 STATEOWNED CARRIER SAID TOTAL AIRLINE TRAFFIC ROSE TO 5141 MILLION TON KILOMETERS IN MAY FROM 4639 MILLION TON KILOMETERS A YEAR EARLIER 9306070167 930607 CANADIAN JOBLESS RATE STEADY OTTAWA CANADA'S UNEMPLOYMENT RATE WAS 114 OF THE LABOR FORCE IN MAY UNCHANGED FROM APRIL STATISTICS CANADA A GOVERNMENT AGENCY SAID 9306070166 930607 INDUSTRY FOCUS BANKS MULL BENEFITS OF BULK VS SINGLE REAL ESTATE SALES OPT FOR QUICKLY CLEARING THE BOOKS OR TRY TO RECOUP AS MUCH AS POSSIBLE BY MITCHELL PACELLE AND STEVEN LIPIN STAFF REPORTERS OF THE WALL STREET JOURNAL WHEN FIRST CHICAGO CORP AND A HANDFUL OF OTHER BANKS DECIDED LAST YEAR TO SELL THEIR TROUBLED REAL ESTATE IN BULK WALL STREET CHEERED FINALLY BANKS WERE DOING SOMETHING ABOUT GETTING BILLIONS OF DOLLARS IN BAD PROPERTY AND REAL ESTATE LOANS OFF THEIR BOOKS BUT NOW SOME OTHER BIG BANKS WITH HUGE PORTFOLIOS OF BAD REAL ESTATE ARE QUESTIONING THAT STRATEGY REAL ESTATE EXECUTIVES AT CITICORP AND CHEMICAL BANKING CORP FOR EXAMPLE ARGUE THAT ONCE BANKS HAVE WRITTEN DOWN THEIR BAD ASSETS THEY SHOULD TRY TO GET THE BEST PRICE THEY CAN BY SELLING PROPERTIES AND LOANS ONE BY ONE RATHER THAN UNLOADING THEM EN MASSE AT A 50 DISCOUNT BANKS FAVORING BULK SALES HOWEVER SAY INDIVIDUAL SALES WHILE GENERALLY BRINGING HIGHER PRICES CARRY ADDED RISK AND THE EXTRA EXPENSE OF MAINTAINING THE PROPERTIES WHICH CAN OFFSET ANY DIFFERENCE IN PRICES INDUSTRY INDECISION ON THE MATTER HAS PREVENTED BULK SALES FROM TAKING OFF WHICH SALES STRATEGY THESE BANKS ULTIMATELY EMBRACE COULD DETERMINE HOW MUCH OF THE BILLIONS IN LOAN LOSS PROVISIONS BANKS AND THEIR SHAREHOLDERS WILL RECOUP IT WILL ALSO AFFECT AN INCREASING NUMBER OF POTENTIAL INVESTORS WHO HAVE ALREADY RAISED HUNDREDS OF MILLIONS OF DOLLARS TO BUY TROUBLED PORTFOLIOS IF MORE BANKS DON'T OPT TO SELL IN BULK INVESTORS MIGHT END UP BIDDING UP THE PRICE OF THE SHRINKING SUPPLY WHICH COULD EAT INTO THEIR EXPECTED RETURNS WITH THE INVENTORY OF DESIRABLE ASSETS HELD BY THE RTC DWINDLING THE LARGEST POTENTIAL SOURCE OF DISTRESSED REAL ESTATE IS NOW BANKS WHICH HOLD ABOUT 26 BILLION IN FORECLOSED PROPERTY AND ANOTHER 33 BILLION IN DELINQUENT PROPERTY LOANS THERE IS LITTLE HARD EVIDENCE WHETHER IT IS MORE ECONOMICAL TO UNLOAD BAD REAL ESTATE ASSETS AT BULK MARKET DISCOUNTS THEREBY SHEDDING THE RISK OF FURTHER DECLINES IN VALUE OR TO SEEK BETTER RETURNS SELLING THEM ONE BY ONE BUT THE RECENT ENTRANCE OF MANY BIGNAME INVESTORS INTO THE DISTRESSED REAL ESTATE MARKET SUGGESTS THAT MANY INVESTORS EXPECT PRICES TO RISE AND THAT BANKS ARE SELLING TOO CHEAP IN FEBRUARY FIRST CHICAGO OPTED FOR A QUICK EXIT SELLING A POOL OF BAD LOANS AND PROPERTIES ORIGINALLY VALUED AT 1 BILLION FOR ABOUT 500 MILLION TO GE CAPITAL CORP THE CHICAGO BANK INCURRED A BIG LOSS LAST YEAR TO WRITE DOWN 2 BILLION IN BAD REAL ESTATE ASSETS WE WANTED TO INSULATE OURSELVES FROM FURTHER EROSION OF THE REAL ESTATE MARKET SAYS CHIEF CREDIT OFFICER JOHN BALLANTINE ALTHOUGH HE CONCEDES THAT SOME OF THE LOANS AND PROPERTIES MIGHT HAVE FETCHED MORE IF SOLD SEPARATELY HE SAYS THE BULK SALE ALLOWED US TO MITIGATE THE OPERATING REGULATORY AND INTERNAL MANAGEMENT COSTS WHICH HE SAYS HE CAN'T QUANTIFY NATIONSBANK CORP WHICH SOLD THREE LARGE PORTFOLIOS LAST YEAR FOR CLOSE TO 700 MILLION CONTENDS THAT HOLDING SUCH ASSETS OBLIGES SENIOR MANAGEMENT TO SPEND MORE TIME WITH REGULATORS AND RATING AGENCIES REQUIRES EMPLOYING PEOPLE TO MANAGE THE ASSETS AND TIES UP CAPITAL FOR RESERVES THAT COULD OTHERWISE BE REINVESTED IF YOU LOOK AT THE 15 TO 20 ANNUAL CARRYING COST IT DOESN'T TAKE BUT ONE OR TWO YEARS TO JUSTIFY A PRETTY SIGNIFICANT BULK SALE DISCOUNT SAYS MICHAEL MALONE A MANAGING DIRECTOR AT THE CHARLOTTE NC BANK PERSUADED BY SUCH REASONING MIDLANTIC CORP OF EDISON NJ IS CURRENTLY MARKETING A REAL ESTATE PORTFOLIO WITH A BOOK VALUE OF 244 MILLION IN ADDITION CHASE MANHATTAN CORP HAS JUST COME TO MARKET WITH SEVERAL PORTFOLIOS TOTALING AS MUCH AS 1 BILLION IN FACE VALUE AND SHAWMUT NATIONAL CORP IS CONSIDERING SELLING BETWEEN 250 MILLION AND 350 MILLION OF PROBLEM ASSETS TO GOLDMAN SACHS & CO AND JE ROBERT COS ACCORDING TO A JE ROBERTS SPOKESMAN THE STOCK MARKET HAS REWARDED SOME BANKS FOR SUCH TACTICS FOLLOWING THE ANNOUNCEMENT OF FIRST CHICAGO'S BULK SALE ITS SHARES TRADED UP FROM JUST UNDER BOOK VALUE TO 140 OF BOOK VALUE NOTES THOMAS HANLEY A BANKING ANALYST AT SALOMOM BROTHERS WHO ATTRIBUTES MOST OF THE INCREASE TO THE TRANSACTION BUT THOMAS BROWN A BANKING ANALYST AT DONALDSON LUFKIN & JENRETTE ARGUES THAT THE MARKET'S RESPONSE IS SHORTSIGHTED THIS IS A CLASSIC CASE OF WHEN WALL STREET LOVES A SHORTTERM FOCUS JUST BECAUSE THEY'VE BUILT THE LOSS RESERVES THERE'S NO REASON TO DO AN UNECONOMICAL TRANSACTION CHEMICAL DOESN'T NEED TO DISSIPATE SHAREHOLDER EQUITY FOR A SHORTTERM BOOST TO STOCK SAYS JOSEPH DELUCCA HEAD OF REAL ESTATE AT THE BIG NEW YORK BANK HE BOASTS THAT HIS DEPARTMENT RANG UP ABOUT 400 MILLION IN SALES OF INDIVIDUAL ASSETS OVER THE PAST FIVE QUARTERS AT PRICES AVERAGING 59 OF ORIGINAL FACE VALUE IF THE BANK HAD SOLD IN BULK AT ABOUT 50 CENTS ON THE DOLLAR IT WOULD HAVE LOST TENS OF MILLIONS OF DOLLAR HE ARGUES IT IS DIFFICULT TO DETERMINE HOWEVER WHETHER THE BANK IS SELLING ITS BETTER PROPERTIES FIRST EVEN SO THE BANK HAS NOT RULED OUT A BULK SALE IT HAS ORDERED THREE SEPARATE EVALUATIONS OF THE BULK SALE OPTION OVER THE PAST YEAR AND IS IDENTIFYING ASSETS SUITABLE FOR SUCH A SALE ACCORDING TO AN INTERNAL MEMORANDUM CITICORP ALSO PROFESSES AN AVERSION TO OFFERING BULK DISCOUNTS ON ITS 56 BILLION IN BAD LOANS AND PROPERTIES WHICH IT HAS WRITTEN DOWN TO 52 OF FACE VALUE OF COURSE SOME ANALYSTS POINT OUT THAT CITICORP HAS TAKEN A MORE GRADUAL APPROACH BECAUSE THE COMPANY CANNOT AFFORD TO INCUR THE BIG HITS WHY WOULD I WANT TO GIVE THE MIDDLEMAN PROFIT TO SOMEONE ELSE ASKS ROBERT MCCORMACK EXECUTIVE VICE PRESIDENT IN CHARGE OF REAL ESTATE WE HAVE AN ORGANIZATION HERE THAT'S AS CAPABLE AS ANYONE OF WORKING OUT THESE PROBLEMS ONE BY ONE INDEED CITICORP RECOVERED 68 OF FACE VALUE ON THE RECENT 92 MILLION SALE OF A STAMFORD CONN OFFICE COMPLEX BUT IT ALSO HAS SOLD FOR LESS THAN 10 MILLION AN AGING BUILDING AT 40 WALL ST WHICH CARRIES MORE THAN 80 MILLION IN CITICORP DEBT IT HAS WRITTEN THE PROPERTY DOWN TO ZERO THERE'S PRECEDENT TO CITICORP'S GAME PLAN THE BANK TOOK THE SAME TACK IN HANDLING LOANS TO DEVELOPING COUNTRIES BECAUSE IT WANTED TO MAINTAIN A PRESENCE IN LATIN AMERICA BY HOLDING LOANS IT WAS ABLE TO RECOUP SOME OF THE LOSSES TAKEN WHEN THE BANK SET ASIDE HUGE RESERVES OUR APPROACH TO REAL ESTATE MIRRORS OUR LATIN AMERICAN DEBT STRATEGY SAYS WILLIAM RHODES VICECHAIRMAN AT CITIBANK WHO HELPED DEVISE BOTH STRATEGIES REAL ESTATE IS THE LARGEST PHYSICAL ASSET CLASS IN THE WORLD AND WE WILL BE A MAJOR PLAYER IN THIS MARKET IN THE FUTURE NEVERTHELESS CITICORP HASN'T RULED OUT CONDUCTING A BULK SALE EXECUTIVES SAY SENIOR MANAGEMENT HAS DEBATED WHICH STRATEGY IS BEST FOR THE BANK AND SHAREHOLDERS IT WON'T BE CLEAR WHETHER SINGLEASSET SALES STRATEGIES WILL PAY OFF UNTIL THE BANKS PURSUING THEM WORK THROUGH THEIR ENTIRE PORTFOLIOS INCLUDING ALL OF THE BAD ASSETS LIKE 40 WALL ST THE FINAL VERDICT SAYS WILLIAM BRUEGGEMAN HEAD OF REAL ESTATE RESEARCH AT GOLDMAN SACHS DEPENDS ON HOW GOOD YOU ARE AT SELLING 9306070165 930607 ABITIBIPRICE LABOR PACT TORONTO ABITIBIPRICE INC SAID THE MAJOR LABOR UNION AT ITS EASTERN CANADIAN PULP AND PAPER MILLS APPROVED A FIVEYEAR AGREEMENT THAT WILL SET THE PATTERN FOR BARGAINING AT OTHER COMPANIES IN THE REGION THE FORESTPRODUCTS COMPANY SAID THE PACT COVERS 3500 COMMUNICATIONS ENERGY AND PAPERWORKERS UNION MEMBERS AT SEVEN MILLS IN ONTARIO QUEBEC AND NEWFOUNDLAND IT PROVIDES NO WAGE INCREASE IN THE FIRST YEAR INCREASES OF 1 IN THE SECOND YEAR AND 15 IN THE THIRD WILL BE PROVIDED HOWEVER THE AGREEMENT INCLUDES A WAGE REOPENER PROVISION FOR THE FOURTH AND FIFTH YEARS OTHER FEATURES OF THE PACT INCLUDE IMPROVEMENTS TO THE PENSION PLAN AND AN EDUCATIONAL PROGRAM TO ENHANCE EMPLOYEES' SKILLS AND EFFICIENCY 9306070164 930607 NEW YORK STOCK EXCHANGE SEAT NEW YORK THE NEW YORK STOCK EXCHANGE SAID A SEAT SOLD FOR 650000 FRIDAY UNCHANGED FROM THE MOST RECENT SALE ON THURSDAY SEATS CURRENTLY ARE BID AT 625000 AND OFFERED AT 950000 9306070163 930607 TAIWAN GOLD IMPORTS FELL IN MAY TAIPEI TAIWAN TAIWAN'S GOLD IMPORTS WERE 857 METRIC TONS VALUED AT US969 MILLION IN MAY DOWN 52 IN TERMS OF WEIGHT AND DOWN 51 IN DOLLAR TERMS FROM 197 MILLION A YEAR EARLIER THE MINISTRY OF FINANCE REPORTED THE MAY FIGURE IS ALSO DOWN FROM APRIL'S GOLD IMPORTS OF 127 METRIC TONS JACK WU A BULLION DEALER AT CHINA TRUST PRECIOUS METALS CO ATTRIBUTED THE 52 FALL IN WEIGHT TO A BIG RISE IN MAY'S GOLD PRICES MAKING BUYERS CURB THEIR INTERESTS AND GOLD STORES IMPORT LESS GOLD 9306070162 930607 UNITED AIR TRAFFIC GAINS 15 CHICAGO UNITED AIRLINES SAID ITS MAY TRAFFIC CLIMBED 15 TO 838 BILLION REVENUE PASSENGER MILES FROM 732 BILLION A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE THE LOAD FACTOR OR PERCENTAGE OF AVAILABLE SEATS FILLED ROSE TO 667 FROM 658 IN MAY 1992 THE UAL CORP UNIT SAID THAT WHILE IT WAS GENERALLY PLEASED WITH THE STRENGTH OF MAY TRAFFIC ITS OVERALL PERFORMANCE CONTINUES TO BE IMPACTED BY WEAK REVENUE PASSENGER YIELDS REFLECTING DISCOUNTED OR LOW FARES UNITED SAID ITS REVENUE PASSENGER MILES IN NORTH AMERICA ROSE 13 IN MAY FROM YEAREARLIER LEVELS WHILE TRANSATLANTIC TRAFFIC GAINED 22 AND TRAFFIC IN THE PACIFIC MARKET INCREASED 85 LATIN AMERICAN TRAFFIC MORE THAN DOUBLED 9306070161 930607 POLITICS & POLICY CLINTON'S PLAN TO REDESIGN THE SPACE STATION MIGHT INADVERTENTLY WIND UP KILLING THE PROGRAM BY BARBARA ROSEWICZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ON THE QUESTION OF WHAT TO DO ABOUT THE SPACE STATION PRESIDENT CLINTON IS FINDING THAT THE MIDDLE GROUND CAN BE ALMOST AS LONELY A PLACE AS MARS MR CLINTON IS ABOUT TO DEFY WASHINGTON'S LAW OF GRAVITY HE'S GOING TO TRY TO CONVINCE SKEPTICS IN CONGRESS AND THE PUBLIC THAT AFTER GOING UP FOR NINE STRAIGHT YEARS THE PRICE OF BUILDING A GOVERNMENT PROJECT CAN ACTUALLY COME DOWN THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION IS SCHEDULED TODAY TO UNVEIL THREE PROPOSED REDESIGNS OF THE SPACE STATION AIMED AT SCALING IT DOWN TO CUT COSTS ROUGHLY IN HALF THE PROPOSALS ARE THE RESULT OF A CLINTONORDERED EFFORT TO FIND A MIDDLE WAY BETWEEN THOSE LIKE BUDGET DIRECTOR LEON PANETTA WHO WANT TO KILL OFF THE SPACE STATION AS TOO EXPENSIVE AND SPACE LOVERS WHO INCLUDE EVEN THE PRESIDENT'S OWN DAUGHTER CHELSEA WHO DREAMS OF ONE DAY DESIGNING SPACE COLONIES ATTEMPTING TO FIND THE MIDDLE GROUND IS TYPICAL OF WHAT HAS EMERGED AS MR CLINTON'S BROADER STYLE OF GOVERNING TO LOOK FOR THE COMPROMISE SOLUTION THAT LEAVES BOTH SIDES IN A DEBATE PARTIALLY SATISFIED BUT NEITHER SIDE COMPLETELY VICTORIOUS THAT'S BEEN HIS APPROACH IN ISSUES AS DISPARATE AS BOSNIA AND A PROPOSED ENERGY TAX BUT IN THE CASE OF THE SPACE STATION MR CLINTON'S HALFWAY APPROACH WILL NOT ONLY DISPLEASE BOTH BOOSTERS AND DETRACTORS BUT COULD CRITICS SAY WIND UP BEING THE WORST OF ALL POSSIBLE WORLDS THE RISK IS THAT WHICHEVER OF THE THREE REDESIGNS MR CLINTON ULTIMATELY CHOOSES COULD SET OFF A CHAIN REACTION THAT INADVERTENTLY MIGHT KILL THE PROPOSED ORBITING SPACE LABORATORY AND IF SO ULTIMATELY GROUND AMERICAN ASTRONAUTS AND CLOSE AN ERA BEGUN BY PRESIDENT KENNEDY AT THIS LATE STAGE A REDESIGN INTRODUCES UNCERTAINTY IN COST ESTIMATES AND TECHNOLOGY CAUSING EQUIVALENT POLITICAL UNCERTAINTY I BELIEVE THERE'S A REAL POSSIBILITY THE SPACE STATION MAY NOT SURVIVE BECAUSE OF POLITICAL CONSIDERATIONS SAYS JOHN WINCH A BOEING CO VICE PRESIDENT HIS CONCERN IS SHARED BY VARIOUS STATION BOOSTERS INCLUDING SPACE BUFFS LAWMAKERS AND OTHER COMPANIES NOW WORKING ON SPACE STATION FREEDOM THE CURRENT BUT STILLUNBUILT DESIGN WHOSE PRICE TAG HAS JUMPED TO 313 BILLION FROM 8 BILLION WHEN IT WAS PROPOSED BY PRESIDENT REAGAN IN JANUARY 1984 THE FUTURE OF THE ENTIRE SPACE PROGRAM IS AT STAKE WARNS DEMOCRATIC REP JIM BACCHUS WHOSE FLORIDA DISTRICT INCLUDES THE KENNEDY SPACE CENTER WITHOUT THE SPACE STATION THERE WILL BE NO CONTINUING MISSION FOR THE SPACE SHUTTLE WITHOUT THE SPACE SHUTTLE THERE WILL BE NO MANNED SPACE PROGRAM WITHOUT A MANNED SPACE PROGRAM I BELIEVE THERE WILL BE NO SPACE PROGRAM AT ALL THE CONGRESSIONAL POLITICAL CALCULUS ON THE SPACE STATION IS TRICKY INDEED AT ONE END ARE LAWMAKERS WHO DON'T WANT TO BUILD IT AT ANY PRICE KILLING EVEN A SCALEDDOWN SPACE STATION WOULD SAVE ALMOST 2 BILLION A YEAR OVER THE NEXT FIVE YEARS AT THE OTHER END ARE THOSE WHO HAVE MANAGED SO FAR TO SINK 9 BILLION INTO SPACE STATION FREEDOM AND HAVE DEFENDED IT FROM BUDGETCUTTING ATTACKS THE PAST TWO YEARS LAST YEAR IN THE HOUSE MORE REPUBLICANS THAN DEMOCRATS VOTED TO SAVE THE SPACE STATION WHICH AFTER ALL IS A PROJECT OF REPUBLICAN PRESIDENTS THIS YEAR REPUBLICANS WILL HAVE LESS REASON TO VOTE FOR THE SPACE STATION AND MAYBE EVEN HAVE REASON TO OPPOSE IT TO TRY TO EMBARRASS MR CLINTON WITH A BIG LOSS POLITICAL RISKS ARE ALSO HIGHER BECAUSE THERE ARE 110 FRESHMEN IN THE HOUSE AND 14 IN THE SENATE WHO ARE UNTESTED ON THE SPACE STATION MOREOVER IT APPEARS NONE OF THE NEW DESIGNS FOR A SPACE STATION CAN BE BUILT AS CHEAPLY AS THE WHITE HOUSE HAD HOPED WITHOUT TRADING OFF SOME KEY CAPABILITIES OVER THE WEEKEND A NASA OFFICIAL CLOSELY INVOLVED IN THE REDESIGN EFFORT SAID A PERMANENTLY MANNED SPACE STATION IN WHICH ASTRONAUTS WOULD LIVE RATHER THAN JUST VISIT CAN'T BE BUILT FOR THE 5 BILLION TO 9 BILLION THAT THE WHITE HOUSE HAS SAID IT'S WILLING TO SPEND WITHOUT DISCLOSING EXACT COST ESTIMATES THE OFFICIAL SAID NASA OFFICIALS WERE ABLE TO ACHIEVE SIGNIFICANT SAVINGS FROM THE CURRENT DESIGN WHICH NEW NUMBERS WILL SHOW WILL COST MORE THAN ITS ADVERTISED PRICE OF 313 BILLION HOWEVER MR CLINTON WILL HAVE TO SETTLE FOR A MORE LIMITED SPACE STATION IF HE STICKS TO HIS BUDGET PLANS OR AGREES TO STRETCH OUT THE PROJECT AND SPEND MORE LATER ROGER PORTER WHO WAS PRESIDENT BUSH'S CHIEF DOMESTICPOLICY ADVISER SAYS CONGRESS MIGHT NOT BE WILLING TO PAY HALFPRICE IF IT MEANS ONLY HALF A SPACE STATION YOU HAVE TO HAVE A COMPELLING SET OF FACTS WHICH SAY WE CAN GET VIRTUALLY ALL OR MOST OF THE BENEFITS WE'VE BEEN LOOKING FOR WITH A SPACE STATION AT A SHARPLY REDUCED PRICE HE SAYS IF YOU CAN'T MAKE THAT CASE AND HAVE IT WITHSTAND THE SCRUTINY OF VERY BRIGHT AND INTELLIGENT PEOPLE THEN YOU'RE BACK TO THE FUNDAMENTAL CHOICE DO WE WANT TO HAVE A SPACE STATION OR NOT KEY DEMOCRATS ALREADY ARE THREATENING NOT TO FOLLOW MR CLINTON DEPENDING ON WHERE HE LEADS HOUSE SCIENCE COMMITTEE CHAIRMAN GEORGE BROWN JR A CALIFORNIA DEMOCRAT HAS PUBLICLY WARNED HE WILL SUPPORT ONLY A DESIGN THAT CLOSELY RESEMBLES THE CURRENT DESIGN OF THE SPACE STATION EVEN WITH THAT HE GIVES THE PROJECT ONLY A 5050 CHANCE OF WINNING FUNDING ANY NEW HAREBRAINED DESIGN WOULD STAND ONLY A 10 CHANCE HE SAYS THE WHITE HOUSE HASN'T SAID WHEN IT WILL CHOOSE WHICH REDESIGN IT WILL RECOMMEND BUT THERE IS PRESSURE TO ACT QUICKLY BECAUSE THE HOUSE THIS MONTH IS SLATED TO VOTE BOTH ON WHAT KIND OF A SPACE STATION IT WANTS AND HOW MUCH TO SPEND ON IT NEXT YEAR ONE OF THE THREE REDESIGN OPTIONS IS A DOWNSIZED VERSION OF THE FREEDOM STATION WHICH WAS TO ALLOW FOUR ASTRONAUTS TO LIVE AND CONDUCT SCIENTIFIC EXPERIMENTS IN THE MICROGRAVITY OF SPACE IT APPEARS TO BE MR CLINTON'S BEST HOPE FOR SEEKING COMPROMISE AND ASSEMBLING A WINNING COALITION BUT TOO HIGH OF A STICKER PRICE COULD TURN OFF THE BUDGETCONSCIOUS WHITE HOUSE THE RISKIEST POLITICALLY SEEMS TO BE THE SOCALLED MAN IN THE CAN OPTION THE MOST RADICALLY DIFFERENT IT WOULD LAUNCH A SEVENFLOOR CANNISTER WITH ONE SHOT INTO SPACE THE THIRD CONCEPT TAKES A MODULAR APPROACH TO BUILDING A SPACE STATION USING SOME HARDWARE NOW DESIGNED FOR FREEDOM BUT RECONFIGURING THE ASSEMBLY WHATEVER MR CLINTON'S CHOICE THE WHITE HOUSE CAN'T JUST SAY I CHOOSE HALF A LOAF' AND THROW IT OVER THE TRANSOM FOR CONGRESS TO FIGHT OVER SAYS LORI GARVER OF THE NATIONAL SPACE SOCIETY A GRASSROOTS GROUP THAT SUPPORTS SPACE COLONIZATION IT'S A TOUGH SELL BUT I THINK IT CAN BE MADE IF YOU'VE MADE IT CLEAR IT'S THAT OR NOTHING 9306070160 930607 WHO'S NEWS L LURIA & SON INC L LURIA & SON INC MIAMI LAKES FLA CYNTHIA COHEN TURK WAS ELECTED TO THE BOARD OF THIS SPECIALTY RETAILER MS TURK 40 YEARS OLD IS PRESIDENT OF MARKETPLACE 2000 A CONSULTING FIRM WITH OFFICES IN MIAMI AND NEW YORK SHE SUCCEEDS A BOARD MEMBER WHO DIED LAST YEAR 9306070159 930607 INTERNATIONAL TAIWAN'S TRADE SURPLUS WIDENS TAIPEI TAIWAN THE NATION'S MERCHANDISE TRADE SURPLUS WIDENED 32 TO 121 BILLION IN MAY FROM 920 MILLION A YEAR EARLIER TAIWAN'S MINISTRY OF FINANCE REPORTED FRIDAY THE MINISTRY SAID MAY'S SURPLUS WAS THE LARGEST SINCE THE SURPLUS OF 124 BILLION RECORDED IN APRIL LAST YEAR IT COMPARES WITH APRIL'S SURPLUS OF 430 MILLION MARCH'S 880 MILLION AND FEBRUARY'S 40 MILLION 9306070158 930607 WHO'S NEWS CURATIVE TECHNOLOGIES INC CURATIVE TECHNOLOGIES INC EAST SETAUKET NY THIS HEALTHCARE CONCERN SPECIALIZING IN WOUNDHEALING PRODUCTS ELECTED LAWRENCE J STUESSER JR 50 YEARS OLD TO ITS BOARD INCREASING IT TO SIX MEMBERS HE IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BOSTONBASED KIMBERLY QUALITY CARE INC A PROVIDER OF HOMEBASE HEALTHCARE SERVICES 9306070157 930607 INTERNATIONAL GERMAN STEEL OUTPUT FALLS 18 FRANKFURT GERMAN RAW STEEL PRODUCTION PLUNGED 18 IN MAY FROM A YEAR EARLIER TO THREE MILLION METRIC TONS THE FEDERAL STATISTICS OFFICE IN WIESBADEN SAID IN THE FIRST FIVE MONTHS OF THE YEAR STEEL PRODUCTION TOTALED 1521 MILLION TONS OR 14 LESS THAN THE YEAREARLIER PERIOD IN WESTERN GERMANY STEEL PRODUCTION IN MAY FELL 14 FROM A YEAR EARLIER TO 293 MILLION TONS OUTPUT FOR THE FIRST FIVE MONTHS OF THE YEAR WAS OFF 14 AT 1411 MILLION TONS STRIKES THROUGHOUT EASTERN GERMANY RESULTED IN A 74 PLUNGE IN STEEL PRODUCTION TO 70000 TONS THE AGENCY SAID OUTPUT FOR THE FIRST FIVE MONTHS OF THE YEAR TOTALED 11 MILLION TONS 79 LESS THAN A YEAR EARLIER 9306070156 930607 FINANCING BUSINESS FIRST CASH INC FIRST CASH INC FORT WORTH TEXAS ANNOUNCED THE PUBLIC OFFERING OF 500000 SHARES OF COMMON STOCK AT 4625 A SHARE THROUGH DICKINSON & CO FIRST CASH WHICH OPERATES PAWN SHOPS SAID PROCEEDS WILL BE USED TO ACQUIRE ADDITIONAL STORES TO UPGRADE THE COMPANY'S MANAGEMENT INFORMATION SYSTEM AND FOR WORKING CAPITAL 9306070155 930607 WHO'S NEWS MANVILLE CORP MANVILLE CORP DENVER MICHAEL N HAMMES 51 YEARS OLD VICE CHAIRMAN OF BLACK & DECKER CORP AND JOHN NILS HANSON 51 PRESIDENT OF THE MINING MACHINERY DIVISION OF JOY TECHNOLOGIES INC WERE NAMED TO THE BOARD OF THIS FIBERGLASS WOOD PRODUCTS AND PAPER PRODUCER THE TWO MEN SUCCEED TWO OF SEVEN DIRECTORS WHO ARE RETIRING FROM THE BOARD LEAVING THE NUMBER OF DIRECTORS AT 14 9306070154 930607 LAW LEGAL BEAT BUMPED FLIERS CAN SUE AIRLINES FOR DAMAGES BY MILO GEYELIN AND JAMES S HIRSCH STAFF REPORTERS OF THE WALL STREET JOURNAL AIRLINE PASSENGERS WHO GET BUMPED FROM OVERBOOKED FLIGHTS HAVE A NEW WAY TO EXPRESS THEIR DISPLEASURE BY SUING FOR DAMAGES A FEDERAL APPEALS COURT IN SAN FRANCISCO RULED LAST WEEK THAT STATECOURT SUITS OVER BUMPING AREN'T PRECLUDED BY FEDERAL AIRLINE REGULATIONS INDUSTRY OFFICIALS SAID THE DECISION WHILE NOT LIKELY TO HAVE A MAJOR FINANCIAL IMPACT ON AIRLINES COULD FORCE THE COMPANIES TO RETHINK THEIR ADVANCE BOOKING PRACTICES THE DECISION OVERTURNING A LOWERCOURT RULING IS BINDING IN OREGON WASHINGTON STATE MONTANA IDAHO AND MOST SIGNIFICANTLY CALIFORNIA WHERE AIR TRAFFIC IS PARTICULARLY HEAVY AND IF ACCEPTED BY OTHER FEDERAL JURISDICTIONS THE DECISION COULD EXPOSE AIRLINES NATIONWIDE TO A CRAZY QUILT OF LIABILITY LAWS THAT VARY FROM STATE TO STATE IT WOULD BE MORE COMPLEX TO ADMINISTER THESE VARIOUS CASES IF AN AIRLINE HAS TO WORRY ABOUT THE LAW IN 50 STATES SAID JOHN ROMANS AN ATTORNEY AT NEW YORK LAW FIRM KATTEN MUCHIN & ZAVIS WHICH REPRESENTED NORTHWEST AIRLINES IN THE CASE THE WINGS HOLDINGS INC UNIT HASN'T DECIDED WHETHER TO SEEK FURTHER APPEALS MR ROMANS SAID IN DOWNPLAYING THE LIKELY FINANCIAL EFFECT OF THE RULING AIRLINES SAID THAT ONLY A SMALL PERCENTAGE OF PASSENGERS ARE INVOLUNTARILY BUMPED AND THUS ELIGIBLE TO SUE CARRIERS TYPICALLY HAVE LITTLE PROBLEM FINDING FLIERS WHO WILL GIVE UP THEIR SEAT IN EXCHANGE FOR A FREE TICKET LATER ON BUT WITH THE THREAT OF POSSIBLE LAWSUITS AIRLINES MAY BECOME LESS AGGRESSIVE IN OVERBOOKING FLIGHTS ACCORDING TO INDUSTRY OFFICIALS AND THAT IN TURN WOULD REDUCE OVERALL PASSENGER VOLUME EVEN A MODEST CUTBACK IN THE NUMBER OF OVERBOOKINGS WOULD COST THE INDUSTRY 200 MILLION A YEAR SAID DONALD GARVETT VICE PRESIDENT OF SH&E A TRAVELINDUSTRY CONSULTING FIRM WHAT'S MORE EVEN THOUGH ONLY 124 PASSENGERS FOR EVERY 10000 BOARDINGS ARE INVOLUNTARILY BUMPED THE SHEER VOLUME OF TRAFFIC ON U S CARRIERS 400 MILLION PASSENGERS A YEAR MEANS THAT MANY STRANDED FLIERS COULD NOW BE POTENTIAL PLAINTIFFS THIS GIVES PEOPLE THE GREEN LIGHT TO FILE SUIT SAID MARK PESTRONK A WASHINGTON LAWYER WHO SPECIALIZES IN TRAVEL ISSUES THE 21 DECISION BY A PANEL OF THE NINTH US CIRCUIT COURT OF APPEALS CAME IN A CASE FILED BY WILLIAM D WEST OF HELENA MONT MR WEST A FORMER PATENT ATTORNEY SUED NORTHWEST IN 1986 AFTER BEING BUMPED FROM AN OVERBOOKED FLIGHT FROM GREAT FALLS MONT TO WASHINGTON DC WHERE HE WAS TO ATTEND A TWODAY PATENTLAW SEMINAR HE HAD BOUGHT HIS NONREFUNDABLE NONCHANGEABLE TICKET A MONTH EARLIER BUT NORTHWEST SWITCHED THE PLANE TO BE USED FROM A BOEING 727 TO ONE WITH HALF THE CAPACITY WITHOUT TELLING TICKET HOLDERS OR RESERVATION AGENTS BUMPED MR WEST TURNED DOWN AN ALTERNATIVE FLIGHT THAT WOULD HAVE TAKEN HIM TO ANOTHER AIRPORT SERVING WASHINGTON BUT WOULD HAVE ARRIVED SIX HOURS LATER HE ALSO REFUSED A CASH PAYMENT OR OTHER FLIGHT TICKETS INSTEAD HE SUED FOR COMPENSATORY AND PUNITIVE DAMAGES UNDER MONTANA LAW FOR ALLEGED BREACH OF GOOD FAITH AND FAIR DEALING IN ITS DECISION THE APPEALS COURT REJECTED NORTHWEST'S PRINCIPAL CONTENTION THAT THE FEDERAL AIRLINE DEREGULATION ACT OF 1978 BARRED MR WEST FROM BRINGING ANY CLAIM AGAINST IT UNDER STATE LAW THE MAJORITY OPINION FOUND MR WEST'S CLAIM FOR COMPENSATORY DAMAGES WAS PERMISSIBLE BECAUSE IT IS ONLY TENUOUSLY CONNECTED TO THE REGULATION OF AIRLINES MEANT TO BE COVERED BY THE FEDERAL LAW THE COURT DISALLOWED THE MUCH MORE THREATENING CLAIMS OF PUNITIVE DAMAGES WHICH ARE MEANT TO PUNISH WRONGFUL CONDUCT THAT PART OF THE DECISION IS EXPECTED TO MINIMIZE THE POTENTIAL FOR BIG JURY AWARDS AND THE INCENTIVE TO FILE SUITS GENERALLY COMPENSATORY DAMAGES COVER ONLY OUTOFPOCKET LOSSES UNLESS A DEFENDANT HAD REASON TO FORESEE OTHER POTENTIAL DAMAGES SUCH AS LOST BUSINESS OPPORTUNITIES OR PROFITS I DON'T SEE BIG MONEY IN IT SAID CORNELL LAW PROFESSOR THEODORE EISENBERG CORNISH F HITCHCOCK A LAWYER FOR THE PUBLIC CITIZEN LITIGATION GROUP THE WASHINGTON CONSUMER ORGANIZATION THAT ARGUED THE APPEAL ALSO DOESN'T SEE A GREAT DEAL OF LITIGATION AHEAD AND HE CONCEDES THAT MOST PASSENGERS ARE HAPPY TO GIVE UP THEIR SEATS IN EXCHANGE FOR ALTERNATE TRANSPORTATION AND A FREE TICKET LATER ON WHEN I'VE BEEN ON CROWDED FLIGHTS I'VE SEEN PEOPLE LINE UP TO GET OFF SAID MR EISENBERG PEOPLE FIGHT TO GET THOSE BENEFITS NEVERTHELESS THE RULING COULD LEAVE AIRLINES EXPOSED TO ENTREPRENEURIAL PLAINTIFFS AND TO CLASSACTION COMPLAINTS ON BEHALF OF THOUSANDS OF FLIERS IF A PATTERN OF BUMPING CAN BE PROVED MR EISENBERG SAID THAT POSSIBILITY AND JUST THE THREAT OF ADDITIONAL LAWSUITS COULD FUNDAMENTALLY CHANGE HOW THE INDUSTRY HANDLES ITS INVENTORY SAYS JOE BRANCATELLI EDITOR OF FREQUENT FLYER A TRAVEL MAGAZINE IRONICALLY AIRLINES COULD RESPOND TO THE RULING WITH STEPS THAT CAUSE SOME INCONVENIENCE TO TRAVELERS FOR EXAMPLE REDUCING THE NUMBER OF ADVANCE BOOKINGS WOULD HURT PASSENGERS SUCH AS BUSINESS FLIERS WHO DOUBLE OR TRIPLEBOOK FLIGHTS FOR THE SAME ROUTE BECAUSE THEY DON'T KNOW WHEN THEY WILL REACH THE AIRPORT INDEED AIRLINES COULD EVEN TAKE A MORE DRASTIC STEP AND SIMPLY REQUIRE ALL CUSTOMERS TO PAY WHEN MAKING AN ADVANCE RESERVATION AND IF THE WOULDBE FLIERS DON'T SHOW UP CHARGE FOR THE FLIGHT ANYWAY MR WEST PURSUED THE CASE BECAUSE HE WAS FURIOUS OVER THE WAY NORTHWEST HANDLED HIS FLIGHT AND THEN INSISTED THAT HE HAD NO RIGHT UNDER STATE LAW TO BE COMPENSATED FOR IT SAID HIS WIFE CANDY AN ASSISTANT MONTANA ATTORNEY GENERAL AND HIS LAWYER AT TRIAL WE'VE EXPENDED MORE THAN WE CAN HOPE TO BE COMPENSATED SAID MRS WEST IT'S A FOOLISH BATTLE IN SOME WAYS BUT YOU EITHER MAKE THE LAW WORK FOR YOU THE WAY YOU KNOW IT SHOULD OR YOU RESIGN YOURSELF TO A LARGE CORPORATION A TRIAL WILL DETERMINE HOW MUCH MR WEST IS OWED BY NORTHWEST HE CLAIMS IT IS MORE THAN 10000 A 21YEAROLD COMPUTER HACKER WAS SENTENCED TO ONE YEAR AND A DAY IN PRISON FOR BREAKING INTO COMPUTER SYSTEMS AND SELLING COMPUTER PASSWORDS US DISTRICT COURT JUDGE RICHARD OWEN IN NEW YORK SAID HE WANTED THE SENTENCE OF JOHN LEE OF BROOKLYN TO DETER OTHER YOUNG COMPUTER USERS FROM SUCH WRONGDOING MR LEE PLEADED GUILTY EARLIER THIS YEAR TO CONSPIRACY AFTER HE AND FOUR OTHER YOUNG HACKERS WERE CHARGED WITH ILLEGALLY ENTERING COMPUTER SYSTEMS OWNED BY COMPANIES SUCH AS SOUTHWESTERN BELL CORP AND TRW INC THE YOUNG MEN WERE MEMBERS OF A HACKER GROUP WELLKNOWN IN COMPUTER CIRCLES AS MOD FOR MASTERS OF DECEPTION OR THE MASTERS OF DISASTER THE CASE AGAINST MOD WAS CONSIDERED SIGNIFICANT BECAUSE IT MARKED THE FIRST TIME THAT FEDERAL INVESTIGATORS OBTAINED EVIDENCE BY TAPPING COMPUTER TRANSMISSIONS SENT OVER TELEPHONE LINES THREE OTHER MEMBERS OF MOD HAVE PLEADED GUILTY BUT HAVEN'T BEEN SENTENCED THE FOURTH IS SCHEDULED TO GO ON TRIAL JULY 6 UNDER THE PLEA AGREEMENT MR LEE COULD HAVE BEEN SENTENCED TO AS LITTLE AS FIVE MONTHS IN PRISON AND FIVE MONTHS PROBATION BUT IN A LETTER TO JUDGE OWEN PROSECUTORS ARGUED THAT MR LEE SHOULDN'T BE LET OFF EASILY AS THE WORLD BECOMES INCREASINGLY RELIANT ON COMPUTERS IN ITS BUSINESS AND OTHER AFFAIRS WE CAN ILL AFFORD TO TOLERATE COMPUTERANARCHISTS LIKE JOHN LEE WHO DELIBERATELY DISREGARD ESTABLISHED RULES GOVERNING THE FUNCTIONING OF THE SYSTEM WROTE STEPHEN FISHBEIN THE ASSISTANT US ATTORNEY HANDLING THE CASE CHARLES ROSS MR LEE'S ATTORNEY CALLED THE SENTENCE A HARSH ONE FOR ACTIVITIES HE SAID AMOUNTED TO LITTLE MORE THAN JUVENILE PRANKSTERISM BUT HE SAID MR LEE WAS READY TO SERVE THE SENTENCE AND GET ON WITH THE REST OF HIS LIFE THE CONVICTIONS OF THREE CHICAGO GANG MEMBERS WERE THROWN OUT BECAUSE OF ALLEGED MISCONDUCT BY THE US ATTORNEY'S OFFICE THAT PROSECUTED THE CASE THE THREE MEN WERE CONVICTED AFTER FEDERAL PROSECUTORS IN CHICAGO CRACKED DOWN ON THE POWERFUL STREET GANG KNOWN AS EL RUKN BUT US DISTRICT JUDGE JAMES F HOLDERMAN CITING DISTURBING MISCONDUCT ORDERED NEW TRIALS FOR THEM JUDGE HOLDERMAN FOUND THAT PROSECUTORS KNEW OF DRUG USE BY JAILED COOPERATING WITNESSES AND BESTOWED OTHER IMPROPER FAVORS UPON THE WITNESSES THE JUDGE ALSO FOUND THAT INFORMATION ABOUT THE MISCONDUCT WAS WITHHELD FROM DEFENSE ATTORNEYS DENYING THEM FAIR OPPORTUNITY TO IMPEACH THE CREDIBILITY OF THE WITNESSES SEVERAL OF THE MORE THAN 50 EL RUKN MEMBERS CONVICTED OVER THE PAST THREE YEARS HAVE FILED SIMILAR PETITIONS FOR NEW TRIALS INTERIM US ATTORNEY MICHAEL SHEPARD WHO RECENTLY ASSUMED THE DUTIES THAT HAD BEEN HELD BY FRED FOREMAN SAID HE WAS SADDENED TO RECEIVE JUDGE HOLDERMAN'S FINDINGS AND IS CONSIDERING AN APPEAL THE JUSTICE DEPARTMENT ALSO IS INVESTIGATING THE ALLEGATIONS WHO'S NEWS DONALD R LIVINGSTON GENERAL COUNSEL OF THE US EQUAL EMPLOYMENT OPPORTUNITY COMMISSION WILL JOIN AKIN GUMP STRAUSS HAUER & FELD HE WILL BECOME A PARTNER IN THE LAW FIRM'S WASHINGTON OFFICE EFFECTIVE NEXT MONDAY JONATHAN M MOSES CONTRIBUTED TO THIS ARTICLE 9306070153 930607 TECHNOLOGY & HEALTH HP LAUNCH MARKS RETURN TO NOTEBOOKS BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL HEWLETTPACKARD CO WILL BEGIN SELLING TODAY A SMALL LIGHTWEIGHT NOTEBOOK COMPUTER THAT IT HOPES WILL GIVE THE COMPUTER COMPANY AN ENTRY INTO A FASTGROWING MARKET IT HASN'T BEEN ABLE TO CRACK THE NEW MACHINE CALLED OMNIBOOK 300 WILL BE HP'S FIRST ENTRY INTO THE PORTABLECOMPUTER MARKET SINCE THE MID1980S WHEN IT INTRODUCED TWO LAPTOP MODELS THAT FAILED TO SELL WELL AND WHICH HP SOON DISCONTINUED HP OF PALO ALTO CALIF HAS RECENTLY HAD SUCCESS SELLING ITS PALMTOP PCS BUT HAS MISSED OUT ON THE MARKET FOR FULLFEATURED PORTABLES HP'S DEVICE BRINGS SEVERAL INNOVATIONS TO THE MARKET WHILE OTHER NOTEBOOK MACHINES USE INTERNAL HARD DRIVES TO STORE SOFTWARE THE OMNIBOOK STORES MUCH OF ITS BASIC SOFTWARE ON INTERNAL COMPUTER CHIPS WHICH USE LESS POWER AND SPACE THE MACHINE'S INTERNAL MEMORY CHIPS CONTAIN THREE PIECES OF MICROSOFT CORP SOFTWARE THE WINDOWS OPERATING SYSTEM A SPREADSHEET AND A WORD PROCESSOR TO STORE LARGER AMOUNTS OF DATA THE COMPUTER USES REMOVABLE CREDITCARD SIZE DEVICES THAT STORE DATA ON MEMORY CHIPS PRODUCTS WITH SIMILAR DESIGNS ARE ALREADY BEING SOLD BUT HP'S IS THE FIRST TO USE A 386MICROPROCESSOR HP SAID THE OMNIBOOK WILL BE PRICED AT 2000 AND 2400 DEPENDING ON FEATURES THE 29POUND MACHINE OFFERS FEATURES FOUND IN MACHINES TWICE ITS WEIGHT HP SAID ROBERT FRANKENBERG AN HP VICE PRESIDENT SAID THE COMPANY EXPECTS TO MAKE A COUPLE HUNDRED THOUSAND OMNIBOOKS DURING THE NEXT 12 MONTHS JEFFREY HENNING AN ANALYST WITH MARKET RESEARCHER BIS STRATEGIC DECISIONS SAID HP'S COMPUTER AS WELL AS OTHERS LIKE IT FACE AN UNCERTAIN MARKET AND ARE JUST GOING TO GO THROUGH THE NATURAL EVOLUTION OF VENDORS TRYING TO FIGURE OUT WHAT WORKS HE SAID HP'S MACHINE FALLS INTO A MARKET CATEGORY THE INDUSTRY CALLS A SUBNOTEBOOK IN 1992 ONLY 59000 SUBNOTEBOOK COMPUTERS WERE SHIPPED WORLDWIDE OR ONLY ABOUT 1 OF ALL NOTEBOOK COMPUTERS SHIPPED ACCORDING TO ESTIMATES BY DATAQUEST INC A MARKET RESEARCH FIRM BUT THAT NUMBER IS EXPECTED TO GROW TEN TIMES IN 1993 DATAQUEST SAID 9306070152 930607 DELTA AIR'S TRAFFIC RISES 85 ATLANTA DELTA AIR LINES SAID ITS TRAFFIC INCREASED 85 IN MAY FROM THE YEAREARLIER PERIOD THE AIRLINE FLEW 693 BILLION REVENUE PASSENGER MILES UP FROM 638 BILLION FLOWN IN MAY 1992 A REVENUE PASSENGER MILE IS ONE PAID PASSENGER FLOWN ONE MILE LOAD FACTOR OR PERCENTAGE OF AVAILABLE SEATS FILLED INCREASED TO 609 FROM 568 FOR THE FIRST FIVE MONTHS OF THE YEAR DELTA'S TRAFFIC INCREASED 7 TO 319 BILLION REVENUE PASSENGER MILES FROM 298 BILLION IN THE YEAREARLIER PERIOD LOAD FACTOR INCREASED TO 592 FROM 56 9306070151 930607 WHO'S NEWS BMW CONSOLIDATES US MANAGEMENT PLANS EXPANSION BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL WOODCLIFF LAKE NJ GERMAN LUXURYCAR MAKER BAYERISCHE MOTOREN WERKE AG CONSOLIDATED US MANAGEMENT OPERATIONS AND NAMED THREE SENIOR EXECUTIVES AS IT PREPARES TO ENTER A STAGE OF EXPANSION IN THE NORTH AMERICAN MARKET HELMUT PANKE WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BMW HOLDING CORP A NEWLY FORMED COMPANY THAT WILL MANAGE AND DIRECT BMW'S NORTH AMERICAN OPERATIONS MR PANKE 46 YEARS OLD WAS DIRECTOR OF CORPORATE PLANNING OF BMW IN MUNICH GERMANY VICTOR H DOOLAN EXECUTIVE VICE PRESIDENT OF SALES AND MARKETING OF BMW'S US SALES ARM WILL SUCCEED KARL H GERLINGER AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE US SALES ARM MR DOOLAN 52 WILL CONTINUE TO SERVE ON THE THREEMEMBER EXECUTIVE BOARD OF BMW OF NORTH AMERICA AND WILL REPORT TO MR PANKE THE AUTO MAKER SAID IT CONSOLIDATED ITS US MANAGEMENT IN AN EFFORT TO OPTIMIZE OUR RESOURCES ITS SALES MARKETING AND PRODUCTION PLANNING MANAGERS WILL NOW OPERATE UNDER THE SINGLE UMBRELLA COMPANY FOR NORTH AMERICA BMW HOLDING WOLFGANG STOFER EXECUTIVE VICE PRESIDENT FOR FINANCE AND ADMINISTRATION OF BMW OF NORTH AMERICA WAS NAMED CHIEF FINANCIAL OFFICER OF THE HOLDING COMPANY UNDER THE OLD STRUCTURE ALL US OPERATIONS FUNCTIONED INDEPENDENTLY AND REPORTED DIRECTLY TO MANAGEMENT IN GERMANY THE COMPANY AND ITS VARIOUS ENTITIES ARE GROWING SAID A BMW SPOKESWOMAN WE MUST COORDINATE TO EFFECT OUR OPTIMAL CORPORATE STRATEGY MR GERLINGER 54 WILL BECOME DIRECTOR OF THE AUTO MAKER'S CENTRAL EUROPEAN SALES REGION EFFECTIVE SEPT 1 MR GERLINGER HAS LED BMW TO A PERIOD OF SOLID SALES GROWTH IN THE US EVEN AS OTHER EUROPEAN LUXURY CAR MAKERS CONTINUE TO LANGUISH BMW SOLD 64921 CARS IN THE US LAST YEAR UP 24 FROM 1991 IT MARKED THE FIRST TIME BMW OUTSOLD AND OUTPRODUCED ARCHRIVAL MERCEDESBENZ A UNIT OF GERMANY'S DAIMLERBENZ AG THE AUTO MAKER IS MOVING FORWARD WITH PLANS TO BUILD A 625 MILLION ASSEMBLY PLANT NEAR SPARTANBURG SC BMW SAID MR DOOLAN'S MANAGEMENT INITIATIVES WILL BE SIMILAR TO HIS PREDECESSOR'S MR PANKE TOLD BMW EMPLOYEES LAST WEEK HE WILL CONTINUE A MOTION AND DIRECTION THAT HAS ALREADY BEEN SET INTO PLACE 9306070150 930607 WHO'S NEWS AEL INDUSTRIES INC AEL INDUSTRIES INC LANSDALE PA THIS MAKER OF ELECTRONIC DEFENSE SYSTEMS SAID MARK H RONALD HAS RESIGNED AS PRESIDENT AND CHIEF OPERATING OFFICER TO BECOME PRESIDENT AND CHIEF EXECUTIVE OF GEC MARCONI ELECTRONIC SYSTEMS CORP WAYNE NJ AEL WHOSE DEFENSE SYSTEMS INCLUDE RADAR ANTENNAS AND AIRCRAFT AVIONICS SAID LEON RIEBMAN CHAIRMAN AND CHIEF EXECUTIVE WILL ASSUME DUTIES OF CHIEF OPERATING OFFICER WHEN MR RONALD LEAVES JUNE 25 9306070149 930607 WHO'S NEWS GWC CORP GWC CORP WILMINGTON DEL PHILIPPE BRONGNIART 54 YEARS OLD WAS ELECTED TO THE EIGHTMEMBER BOARD OF THIS WATER AND WASTEWATER UTILITY CONCERN MR BRONGNIART HAS BEEN AN EXECUTIVE VICE PRESIDENT OF PARISBASED LYONNAISE DES EAUXDUMEZ HE WILL SUCCEED CHRISTINE MORINPOSTEL WHO RESIGNED TO JOIN FRENCH FINANCIAL FIRM FINANCIER INDOSUEZ SHE HAD BEEN A GWC DIRECTOR SINCE 1982 WHEN LYONNAISE DES EAUXDUMEZ FIRST INVESTED IN GWC THROUGH ITS LYONNAISE AMERICAN HOLDING INC SUBSIDIARY IT CURRENTLY OWNS 82 OF GWC 9306070148 930607 SUIT AGAINST CRANE CO DISMISSED STAMFORD CONN CRANE CO SAID A FEDERAL COURT IN MISSOURI DISMISSED A LAWSUIT FILED BY A FORMER SHAREHOLDER RELATED TO ALLEGED PENSIONLAW VIOLATIONS BY THE COMPANY AND A FORMER UNIT THE COMPLAINT RELATED TO THE COMPANY'S SPINOFF OF ITS UNPROFITABLE STEEL SUBSIDIARY CF&I STEEL CORP IN 1985 ALLEGEDLY TO EVADE PENSION LIABILITIES CRANE MAKES ENGINEERED INDUSTRIAL PRODUCTS 9306070147 930607 INTERNATIONAL DAEWOO TO BUILD CARS IN PERU SEOUL SOUTH KOREA'S DAEWOO GROUP AGREED TO FORM A JOINT VENTURE WITH A PERUVIAN COMPANY TO BUILD AN AUTOMOBILE PLANT WITH AN ANNUAL CAPACITY OF 20000 UNITS IN PERU DAEWOO OFFICIALS SAID DAEWOO OFFICIALS WOULDN'T ELABORATE FURTHER ON THE DETAILS OF THE VENTURE OR NAME THE PERUVIAN PARTNER THE VENTURE AGREEMENT WAS MADE IN A THURSDAY TALK BETWEEN DAEWOO CHAIRMAN KIM WOOJOONG AND VISITING PERUVIAN PRESIDENT ALBERTO FUJIMORI DAEWOO OFFICIALS SAID AT THE MEETING DAEWOO ALSO AGREED TO PARTICIPATE IN THE CONSTRUCTION OF A 440 KILOMETER HIGHWAY IN PERU THAT WILL COST A TOTAL 150 MILLION DAEWOO IS SOUTH KOREA'S THIRDLARGEST BUSINESS CONGLOMERATE WITH A WIDE RANGE OF BUSINESS LINES INCLUDING AUTOMOBILES ELECTRONICS AND SHIPBUILDING 9306070146 930607 INTERNATIONAL PHILIPPINES' INFLATION RATE SLOWS MANILA PHILIPPINES THE PHILIPPINES' YEARONYEAR INFLATION RATE SLOWED TO 67 IN MAY FROM 74 IN APRIL THE NATIONAL STATISTICS OFFICE REPORTED FRIDAY 9306070145 930607 INTERNATIONAL BRAZIL'S GDP GROWS SAO PAULO BRAZIL'S GROSS DOMESTIC PRODUCT GREW 436 IN THE FIRST THREE MONTHS OF 1993 COMPARED WITH THE FINAL QUARTER OF LAST YEAR THE GOVERNMENT SAID GDP FELL 099 IN 1992 TO 4264 BILLION A GOVERNMENT INSTITUTE SAID CORRECTING AN EARLIER ESTIMATE OF A 093 DECLINE GDP MEASURES THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED HOWEVER WITH INFLATION PUSHING 30 A MONTH FEW ANALYSTS TAKE THE GOOD NEWS AS A SIGN THAT BRAZIL'S ECONOMIC CRISIS IS OVER 9306070144 930607 SWISS APPROVE BIG JET ORDER FOR MCDONNELL SALE OF 34 F/A18 FIGHTERS FOR 25 BILLION CLEARS A NATIONAL REFERENDUM BY WALL STREET JOURNAL REPORTERS JEFF COLE IN LOS ANGELES AND MARGARET STUDER IN ZURICH MCDONNELL DOUGLAS CORP SECURED A 25 BILLION SALE OF 34 FIGHTER JETS TO SWITZERLAND AFTER VOTERS THERE APPROVED THE DEAL IN A CONTENTIOUS NATIONAL REFERENDUM BUT FUTURE FOREIGN SALES OF THE F/A18 HORNET AIRCRAFT WILL BE DIFFICULT FOR THE ST LOUISBASED CONTRACTOR TO NAIL DOWN AT LEAST IN THE NEAR TERM A MAJOR CONTEST TO SELL 60 OF THE FIGHTERATTACK AIRCRAFT TO ISRAEL LATER THIS YEAR PITS IT AGAINST LOCKHEED CORP'S F16 FIGHTER WHICH IS ALREADY IN THE ISRAELI FLEET IN SWITZERLAND 572 OF VOTERS REJECTED A PROPOSAL FOR A MORATORIUM UNTIL THE YEAR 2000 ON PURCHASE OF THE FIGHTERS FOR THE SWISS AIR FORCE IN A SECOND REFERENDUM VOTERS ALSO THREW OUT A PROPOSAL THAT WOULD HAVE RESTRICTED EXPANSION OF THE COUNTRY'S MILITARY TRAINING GROUNDS WHILE MOST OF THE SWISS JETS WILL BE SHIPPED IN KITS IN 1995 AND 1996 FOR FINAL ASSEMBLY IN SWITZERLAND THE SALE IS NONETHELESS IMPORTANT FOR MCDONNELL DOUGLAS IT HELPS STRENGTHEN PARTSPRODUCTION LINES IN THE US AS WORLD MILITARY SPENDING IS FALLING SAID JOHN CAPELLUPO THE COMPANY EXECUTIVE VICE PRESIDENT WHO IS CHIEF OF FIGHTER OPERATIONS COMPANY OFFICIALS ESTIMATE 40000 US WORKERS ARE INVOLVED IN MAKING COMPONENTS FOR THE JETS OR ASSEMBLING THEM INCLUDING ABOUT 13000 AT MCDONNELL DOUGLAS AND AT THE PLANE'S LOS ANGELESBASED CHIEF SUBCONTRACTOR NORTHROP CORP THE SWISS ARE KNOWN FOR BEING EXCELLENT EVALUATORS MR CAPELLUPO SAID SO THE SALE ALSO PROVIDES AN IMPORTANT BOOST TO THE AIRPLANE'S REPUTATION AMONG POTENTIAL BUYERS ANOTHER KEY TO SECURING FOREIGN SALES IS CONTINUED BACKING FROM THE US NAVY WHICH REMAINS STEADFASTLY BEHIND THE JET THE NAVY PLANS TO BUY 36 THIS YEAR AND TO CONTINUE 488 BILLON IN FUNDING FOR DEVELOPMENT OF ADVANCED VERSIONS OF THE F/A18 THAT ARE TO BEGIN ARRIVING FROM FULL PRODUCTION IN 1998 BUT THE US SPENDING PLANS STILL MUST PASS MUSTER WITH CONGRESS AND THE SO CALLED BOTTOMUP REVIEW OF MILITARY SPENDING NOW UNDER WAY IN THE PENTAGON MEANWHILE FOREIGN SALES PROSPECTS ARE THINNING THE ISRAELI COMPETITION EXPECTED TO BE SETTLED BY SEPTEMBER OR OCTOBER LOOKS FROM OUR POINT AS EXTREMELY DIFFICULT BECAUSE THEY ALREADY HAVE 200 F16S SAID MR CAPELLUPO ALTHOUGH THE MCDONNELL DOUGLAS JET HAS FARED WELL IN ISRAEL'S EVALUATIONS AND THE COMPANY IS PUSHING HARD FOR THE SALE WHILE MR CAPELLUPO HAD EXPRESSED OPTIMISM EARLIER THIS YEAR ABOUT A FURTHER SALE OF 20 F/A18S TO KUWAIT HE NOW SAYS THAT PROSPECT IS MOVING ALONG SLOWER THAN WE ANTICIPATED A POTENTIAL SALE OF 18 TO MALAYSIA ALSO IS EXPECTED TO BE DECIDED SOON BEYOND THAT HE ADDED THERE IS NOTHING ON THE HORIZON IMMEDIATELY THE COMPANY ALREADY HAS SOLD 64 HORNETS TO FINLAND FOR ABOUT 3 BILLION AND WON US APPROVAL LAST YEAR TO SELL AS MANY AS 72 OF ITS F15 FIGHTERS TO SAUDI ARABIA IN SWITZERLAND THE OPENLY PLEASED SWISS DEFENSE MINISTER KASPAR VILLIGER HAILED THE RESULT AS A RESPONSIBLE DECISION AND A YES' TO A MODERN ARMY HE HAD FOUGHT HARD TO DEFEAT BOTH REFERENDUM QUESTIONS SOCIAL DEMOCRATIC PARTY PARLIAMENTARIAN ANDREAS GROSS WHO LED THE CAMPAIGN AGAINST ACQUIRING THE HORNETS ACCUSED PROMILITARY ACTIVISTS OF TURNING THE REFERENDUM INTO A VOTE ON THE NEED FOR SWISS DEFENSE FORCES MR GROSS HAD FOUGHT AGAINST MODERNIZATION OF THE SWISS AIR FORCE WITH THE ARGUMENTS THAT THERE WASN'T ANY NEED FOR NEW PLANES IN A POSTCOLD WAR EUROPE AND THAT THE 34 BILLION SWISS FRANCS COULD BE BETTER SPENT ON CREATING SWISS JOBS AND PROMOTING THE PROSPERITY OF EASTERN EUROPE BOTH THE SWISS GOVERNMENT AND FEDERAL PARLIAMENT APPROVED THE HORNET PROCUREMENT IN 1992 HOWEVER A REFERENDUM WAS NECESSARY AFTER ANTIARMY ACTIVISTS GATHERED NEARLY DOUBLE THE 100000 SIGNATURES REQUIRED UNDER SWISS LAW TO FORCE A NATIONAL VOTE 9306070143 930607 FOREIGN EXCHANGE DOLLAR SENTIMENT IMPROVES BUT CURRENCY NEEDS MORE GOOD NEWS TO PUSH IT HIGHER BY THOMAS D LAURICELLA SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR RALLIED IMPRESSIVELY ON FRIDAY IN RESPONSE TO STRONGERTHANEXPECTED US EMPLOYMENT FIGURES BUT WHILE SENTIMENT TOWARD THE DOLLAR HAD CLEARLY IMPROVED BOLSTERED BY TALK THAT THE FEDERAL RESERVE COULD SOON RAISE INTEREST RATES TRADERS SAID FURTHER GOOD NEWS WOULD BE NEEDED TO PROPEL THE CURRENCY OUT OF THE RANGES IT HAS HELD SINCE THE START OF THE YEAR THE DOLLAR SURGED FRIDAY ESPECIALLY AGAINST EUROPEAN CURRENCIES BY THE END OF TRADING THE DOLLAR STOOD AT 16265 MARKS UP FROM 15995 MARKS LATE THURSDAY THE GAIN WAS SMALLER AGAINST THE JAPANESE CURRENCY WITH THE DOLLAR ENDING AT 10775 YEN UP FROM 10726 YEN ABOUT MIDDAY MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 10756 YEN AND AT 16253 MARKS THE RALLY CAME IN RESPONSE TO A LABOR DEPARTMENT REPORT THAT NONFARM PAYROLL EMPLOYMENT ROSE 209000 DURING MAY OUTSTRIPPING MARKET EXPECTATIONS OF A RISE OF ABOUT 155000 ALSO THE UNEMPLOYMENT RATE UNEXPECTEDLY FELL TO 69 IN MAY FROM 7 IN APRIL WHAT THIS EMPLOYMENT REPORT DID WAS TO CONFIRM THAT THE ECONOMY IS NOT ABOUT TO FALL BACK IN RECESSION BUT IS VERY WELL ENTRENCHED IN AN EXPANSION PHASE SAID KATHLEEN STEPHANSEN SENIOR ECONOMIST AT DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE REPORT OF STRONGERTHANEXPECTED JOBS GROWTH ALSO PROMPTED EVEN GREATER SPECULATION THAT THE FED MAY SOON HAVE TO RAISE SHORTTERM INTEREST RATES IF REPORTS ON PRODUCER AND CONSUMER PRICES SHOW INFLATION PRESSURES ARE CONTINUING TO RISE THE GOOD NEWS FOR THE US ECONOMY CAME ONLY A DAY AFTER ANOTHER ECONOMIC RELEASE SHOWED THE GERMAN ECONOMY SINKING WESTERN GERMANY POSTED A 15 DECLINE IN FIRSTQUARTER GROSS DOMESTIC PRODUCT FROM FOURTHQUARTER 1992 LEVELS THE DATA SHOW GERMANY IS IN FOR QUITE A PROLONGED DOWNTURN SAID JOHN ROTHFIELD CURRENCY ANALYST AT FIRST NATIONAL BANK OF CHICAGO AGAINST THIS BACKDROP THE DOLLAR SHOULD REMAIN WELLSUPPORTED AND STANDS A GOOD CHANCE OF CONTINUING TO EDGE HIGHER IN COMING SESSIONS CURRENCY WATCHERS SAID THE DOLLAR COULD HEAD UP TOWARD 166 MARKS THIS WEEK ACCORDING TO MR ROTHFIELD THERE HAS BEEN SOME PENT UP DEMAND FOR DOLLARS FROM PEOPLE WHO WERE WAITING FOR LOWER LEVELS TO BUY AND DIDN'T GET THEM THOSE PEOPLE MIGHT BE COMING IN ON BOARD EARLY IN THE WEEK CHARLES SPENCE MANAGER OF FOREIGN EXCHANGE AT STANDARD & CHARTERED BANK IN LOS ANGELES SAID DATA SHOWING A BETTER PACE OF US ECONOMIC GROWTH COULD DRAW FUNDS IN FROM INVESTORS OVERSEAS FOR FOREIGN PLAYERS OVER THE PAST FEW MONTHS ALL THEY'VE SEEN IN THE PRESS AND FROM THE WHITE HOUSE IS TALK ABOUT THE ECONOMY DRAGGING ALONG MR SPENCE SAID BUT WHILE THE US CURRENCY WILL LIKELY BENEFIT FROM THE EMPLOYMENT REPORT IT WILL TAKE STILL MORE NEWS TO BREAK THE DOLLAR ABOVE ITS HIGH FOR THE YEAR NEAR 167 MARKS I DON'T THINK THERE IS ENOUGH NEWS TO TAKE US UP AND OVER MR SPENCE SAID ONE FIXEDINCOME PORTFOLIO MANAGER WITH INVESTMENTS IN EUROPE DOESN'T EXPECT A SIGNIFICANT DOLLAR RALLY I DON'T THINK THIS IS THE BIG BREAK FOR THE DOLLAR ON THE UPSIDE SAID CARL ERICSON MANAGER OF THE STRATEGIC INCOME FUND AT COLONIAL MUTUAL FUNDS EVEN WITH THE BETTER READING ON EMPLOYMENT THERE IS MORE RISK TO THE RECOVERY THAN THERE IS A RISK OF INFLATION SAID MR ERICSON THIS IS A RECOVERY THAT HAS TO BE BABIED AND AS FOR FORECASTS THAT THE DOLLAR WILL STAND AT 180 MARKS BY YEAR END WE DON'T THINK YOU CAN GET THERE UNLESS THE US ECONOMY HAS MOVED A LOT FURTHER ALONG IN ITS GROWTH AND THE EUROPEAN ECONOMIES ROLL OVER AND GO BACKWARDS HE SAID THE WILD CARD FOR THE DOLLAR OVER THE COMING WEEK WILL BE THE REPORTS ON PRODUCER PRICES TO BE RELEASED FRIDAY AND ON CONSUMER PRICES TO BE RELEASED NEXT MONDAY EARLY FORECASTS CENTER ON MODEST 02 INCREASES FOR BOTH REPORTS BUT IF THE INFLATION DATA SHOW LARGER INCREASES ANALYSTS SAID THE FED COULD BE FORCED TO PUSH THE RATE ON FEDERAL FUNDS UP SLIGHTLY FROM ITS CURRENT 3 TARGET FEDERAL FUNDS ARE RESERVES THAT BANKS LEND ONE ANOTHER OVERNIGHT ANALYSTS CONTEND THAT WHILE THERE HAS BEEN A GREAT DEAL OF TALK OF A POSSIBLE FED TIGHTENING THE MARKET HAS YET TO FACTOR IN AN ACTUAL CHANGE IN RATES THAT MEANS THE DOLLAR WOULD HAVE SOME ADDED ROOM TO RALLY SHOULD A TIGHTENING REALLY TAKE PLACE BUT DON'T LOOK FOR THE US CURRENCY TO ZOOM SUBSTANTIALLY HIGHER EVEN IF THE FED TIGHTENS SAID DONALDSON LUFKIN'S MS STEPHANSEN WITH A FED TIGHTENING SHE SAID YOU WOULD HAVE AN INITIAL MOVE THROUGH 165 MARKS AND THEN BE IN A RANGE OF 165 TO 170 MARKS FOR THE REST OF THE YEAR 9306070142 930607 BUSINESS BRIEFS TREDEGAR INDUSTRIES INC SAID ITS TREDEGAR MOLDED PRODUCTS UNIT AGREED IN PRINCIPLE TO BUY THE ASSETS OF CLOSELY HELD POLESTAR PLASTICS INC TERMS WEREN'T DISCLOSED EG&G INC AGREED TO ACQUIRE WALLAC GROUP A UNIT OF PROCORDIA AB FOR ABOUT 46 MILLION 9306070141 930607 LEISURE & ARTS TELEVISION SPICING UP THE SUMMER BY ROBERT GOLDBERG FOR AS LONG AS THERE HAVE BEEN TV SETS SUMMER HAS BEEN THE TIME TO TURN THEM OFF BUT RECENTLY THE NETWORKS STUNG BY THE SUCCESSES OF HBO AND FOX HAVE BEGUN CROWING ABOUT THEIR BOLD NEW PROGRAMMING STRATEGY THE END OF SUMMER AS WE KNOW IT THERE'S NO LONGER GOING TO BE AN OFFSEASON NOW SUMMER WILL BE ANOTHER HOT NEW MOMENT TO INTRODUCE HOT NEW SHOWS SOUNDS EXCITING SO LET'S TAKE A LOOK AT SOME OF THE FIRST PROGRAMS THEY'RE PRESENTING TWO HUNKS ON A HIGHWAY HEADED JUST ABOUT ANYWHERE THAT'S THE PREMISE OF ROUTE 66 NBC TUESDAYS 89 PM EDT MORE THAN THREE DECADES AGO THE ORIGINAL ROUTE 66 ROLLED DOWN THE ROAD FROM CHICAGO TO SANTA MONICA WITH A PAIR OF FREE SPIRITS BEHIND THE WHEEL GEORGE MAHARIS AND MARTIN MILNER AND A CULT SHOW WITH AN OFFBEAT BEAT SENSIBILITY WAS BORN NOW 30 YEARS LATER NICK JAMES WILDER HAS INHERITED HIS DAD'S FLASHY REDANDWHITE 1961 CORVETTE CONVERTIBLE AND HE TOO WILL CATCH DOTTEDLINE FEVER BUT FIRST HE NEEDS A SIDEKICK TRAVELLING HOME FROM ARIZONA TO ALLENTOWN PA HE SPOTS A GREGARIOUS HITCHHIKER ARTHUR DAN CORTESE I'VE BEEN STANDING IN THIS DESERT FOR HOURS ARTHUR WHINES I'VE GOT NO SUNBLOCK AND THE DESERT ANIMALS ARE GIGGLING AT ME CLEARLY THIS IS THE BEGINNING OF A BEAUTIFUL FRIENDSHIP SOON THEY'RE HEADING DOWN THE HIGHWAY LOOKING FOR ADVENTURE OR WHATEVER COMES THEIR WAY THEY'VE GOT THE WIND IN THEIR HAIR AND THE MUSIC BLASTING AND YOU KNOW IT'S ONLY A MATTER OF TIME BEFORE THEY RUN INTO A MYSTERIOUS AND LOVELY STRANGER IN TROUBLE A BODACIOUS BABE WITH A SECRET SHE'LL STEAL THEIR CAR WHICH WILL GET NICK AND ARTHUR PLENTY SORE BUT NOT SO SORE THEY DON'T INVITE HER TO JOIN THEM AS SOON AS THEY SPOT HER AGAIN IN SUBSEQUENT EPISODES NICK AND ARTHUR WILL LOSE THEIR WAY ON THE ROAD TO THE HOOVER DAM AND RESCUE ALMOST THE ENTIRE POPULACE OF SEVEN CORNERS IDAHO THEY'RE STUCK IN A BUS STALLED ON THE TRAIN TRACKS NICK AND ARTHUR MUST MANFULLY SHOULDER THE BURDEN OF BEING TREATED AS HEROES WHILE ADORING GIRLS FLUTTER THEIR EYELASHES AND ASK THEM MEANINGFUL QUESTIONS WHAT'S IT LIKE DRIVING ANYWHERE YOU WANT PAVEMENT IS PAVEMENT IS PAVEMENT SAYS NICK WHERE THE ORIGINAL ROUTE 66 POSSESSED A CERTAIN EDGE A CERTAIN ISSUESORIENTED INTENSITY THIS REMAKE AIMS TO BE SIMULTANEOUSLY WACKY AND HEARTFELT AND IT'S NOT REALLY EITHER FOR EXECUTIVE PRODUCERS HERBERT LEONARD AND HARLEY PEYTON THE STATED GOAL IS TO TRY TO DO THE SHOW AS IF PRESTON STURGES WAS ADAPTING KEROUAC'S 'ON THE ROAD' IT COMES OUT MORE LIKE IVAN REITMAN ADAPTING THE MOBIL TRAVEL GUIDE THE WRONG TURNS INCLUDE CHEAP PHILOSOPHIZING MINIMAL CHARACTER DEVELOPMENT MOST KIDS HAVE A MOM AND DAD ALL I HAD WAS THIS EMPTY SPACE AND EVEN LESS COHERENT PLOTTING PLAYING HIMSELF MR CORTESE OF MTV SPORTS FAME DOES SLIP IN A FEW AMUSING LINES I NOT ONLY PUSH THE OUTSIDE OF THE ENVELOPE I SEND IT POSTAGE DUE BUT THE REAL GOAL OF THIS ROUTE 66 REMAKE IS TO UPDATE THE OLD MADCAP ROAD COMEDIES AND UNFORTUNATELY IT'S NOT NEARLY AS FUNNY AS BOB HOPE AND BING CROSBY AND CERTAINLY NOT AS USEFUL AS A GOOD ROAD MAP BELLY LAUGHS INSIGHT INTO HUMAN RELATIONSHIPS AN ACTIONPACKED ADVENTURE ON WHEELS GUYS YOU CAN'T GET THERE FROM HERE CUTTERS CBS FRIDAYS 8309 PM EDT TRAVELS TO THE SMALL SCREEN VIA A ONEYEAR DETOUR AFTER IT WAS BUMPED FROM LAST SUMMER'S SCHEDULE PERHAPS THIS COMEDY ABOUT BARBERING SEEMS ESPECIALLY TIMELY NOW OR IT WOULD IF THE PRODUCERS HAD THOUGHT TO SET IT ON THE PRESIDENT'S PLANE AS IT IS WHAT WE HAVE ARE TWO SIDEBYSIDE HAIRCUTTING EMPORIUMS IN BUFFALO NY A HIS AND HERS OF LOCKS AND SHEARS ON THE HIS SIDE A CHAUVINISTIC FATHER AND SON RUN AN OLDFASHIONED BARBER SHOP COMPLETE WITH SPORTS PENNANTS AND ISSUES OF PLAYBOY ALL THEY LACK IS CUSTOMERS ON THE HERS A FRILLY BEAUTY SALON WHERE BUSINESS IS BOOMING SOON ENOUGH THE TWO SHOPS WILL MERGE GIVING RISE TO A BATTLE OF THE SEXES AND ALONG THE WAY WE'LL HAVE THE REQUISITE JOKES ABOUT MEN WOMEN AND PMS MY FACE IS HOLDING A ZIT CONVENTION I CAN'T WALK PAST A GLASS OF WATER WITHOUT RETAINING IT THE PROBLEM WITH THIS COMEDY IS THAT THE LAUGHS ARE AS HARD TO FIND HERE AS A GOOD BUZZ CUT FOR EXAMPLE THERE'S A SEQUENCE ABOUT SWITZERLAND THAT SENDS THE CHUCKLE TRACK INTO HYSTERICS THE CAPPER IT'S A WHOLE COUNTRY FULL OF YODELING CHEESEMAKERS WHO WON'T TAKE A STAND ON ANYTHING THE ONE PLEASANT SURPRISE OF CUTTERS IS THAT DESPITE THE PEDESTRIAN WRITING THE CHARACTERS ARE FUN ROBERT HAYES AS THE EARNEST YOUNG MAN DAKIN MATTHEWS AS HIS CROTCHETY FATHER HARRY AND ESPECIALLY MARGARET WHITTON AS THE SHARPTONGUED STYLIST HOW CAN I HELP YOU SHE ASKS A CUSTOMER AS IF IT WEREN'T PAINFULLY OBVIOUS THE SPICIEST MOST DARING PART OF CUTTERS IS THE INTRODUCTION OF TROY JULIUS J CARRY III A BLACK GAY HAIRDRESSER THAT THE ARCHIE BUNKERISH HARRY HAS NO INTENTION OF HIRING LET ME SPELL IT OUT FOR YOU SAYS HARRY NAME ONE JOHN WAYNE MOVIE YOU LIKE I'M STRAIGHT AND GLAD OF IT TROY SMILES I'M SURE I SPEAK FOR THE ENTIRE GAY COMMUNITY WHEN I SAY WE'RE GLAD YOU'RE STRAIGHT TOO HARRY INTRODUCES HIS SON JOE NAMED AFTER JOE DIMAGGIO A REAL MAN A MAN'S MAN THEN AGAIN HE SAYS TO TROY I GUESS YOU'RE SORT OF A MAN'S MAN TOO IN A WAY AREN'T YOU BUT TROY WILL HAVE THE LAST LAUGH IN THIS SCENE WHERE IT TAKES A RISK POKING FUN AT PEOPLE AND THEIR PREJUDICES CUTTERS GIVES THE EVIDENCE THAT IT MIGHT HAVE HAD SOME AMUSING POTENTIAL BUT AS IT IS THIS IS SIMPLY ONE MORE SITCOM IN SEARCH OF A MAKEOVER OR AT LEAST A GOOD PERM IF CUTTERS AND ROUTE 66 ARE THE BEST THE BOYS OF SUMMER HAVE TO OFFER LET'S MOVE RIGHT ON TO THE FALL 9306070140 930607 WHO'S NEWS F&M DISTRIBUTORS INC F&M DISTRIBUTORS INC WARREN MICH EARL T WEISSERT 47 YEARS OLD EXECUTIVE VICE PRESIDENT OF MERCHANDISING WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS DISCOUNT STORE CHAIN HE SUCCEEDS FRANK A NEWMAN WHO RESIGNED FROM THE COMPANY TO ACCEPT ANOTHER POSITION IN THE RETAIL INDUSTRY 9306070139 930607 WHO'S NEWS STOCK EXCHANGE ELECTS FOUR NEW DIRECTORS TO 26MEMBER BOARD NEW YORK THE NEW YORK STOCK EXCHANGE ELECTED FOUR NEW DIRECTORS TO REPLACE THOSE WHO HAVE SERVED THREE TERMS THE MAXIMUM ALLOWED THE NEW DIRECTORS INCLUDE PAUL A ALLAIRE CHAIRMAN AND CHIEF EXECUTIVE OF XEROX CORP AND BERNARD MARCUS CHAIRMAN AND CHIEF EXECUTIVE OF HOME DEPOT INC THEY SUCCEED JOHN A GEORGES CHAIRMAN AND CHIEF EXECUTIVE OF INTERNATIONAL PAPER CO AND RUSSELL B LONG FORMER CONGRESSMAN AND CURRENT PARTNER OF LONG LAW FIRM AS PUBLIC REPRESENTATIVES ON THE 26MEMBER BOARD THE BOARD CONSISTS OF 12 MEMBERS FROM THE PUBLIC 12 SECURITIESINDUSTRY MEMBERS AND TWO NEW YORK STOCK EXCHANGE OFFICERS BOARD MEMBERS SERVE TWOYEAR TERMS JOINING AS SECURITIESINDUSTRY REPRESENTATIVES ARE ROBERT B FAGENSON PRESIDENT OF FAGENSON & CO AND BENJAMIN H GRISWOLD IV CHAIRMAN OF ALEX BROWN INC THEY SUCCEED JAMES A JACOBSON PARTNER OF BENJAMIN JACOBSON & SONS AND VICE CHAIRMAN OF THE EXCHANGE BOARD AND JAMES C BRADFORD JR SENIOR PARTNER OF JC BRADFORD & CO 9306070138 930607 FINANCING BUSINESS DIAMOND SHAMROCK INC DIAMOND SHAMROCK INC SAN ANTONIO TEXAS SAID IT AGREED TO SELL CONVERTIBLE PREFERRED STOCK IN A PRIVATE PLACEMENT FOR AN AGGREGATE OF 75 MILLION THE STOCK IS CONVERTIBLE INTO ABOUT 2830000 DIAMOND SHAMROCK COMMON SHARES THE PETROLEUM REFINER AND MARKETER HAD ABOUT 288 MILLION COMMON SHARES OUTSTANDING AS OF APRIL 30 THE TRANSACTION SUBJECT TO VARIOUS CONDITIONS IS EXPECTED TO BE COMPLETED THIS WEEK THE COMPANY SAID PROCEEDS OF THE OFFERING WILL BE USED TO REPAY SHORTTERM BORROWINGS AND FOR INVESTMENT IN SHORTTERM INVESTMENT GRADE SECURITIES 9306070137 930607 TAJIKISTAN JOINS WORLD BANK WASHINGTON TAJIKISTAN BECAME THE 175TH MEMBER OF THE WORLD BANK AND THE LAST OF THE 15 FORMER SOVIET REPUBLICS TO JOIN THE MEMBERSHIP WAS FINALIZED THROUGH A 532 MILLION SUBSCRIPTION BY THE CENTRAL ASIAN REPUBLIC THE WORLD BANK SAID TAJIKISTAN ALSO BECAME A MEMBER OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION THE CONCESSIONAL LOAN ARM OF THE WORLD BANK 9306070136 930607 WHO'S NEWS US SHOE CORP US SHOE CORP CINCINNATI MICKEY SCHULMAN 54 YEARS OLD RETIRED AS PRESIDENT OF THE WHOLESALE FOOTWEAR UNIT OF THIS COMPANY WHICH HAS SEEN DECLINING SALES IN FOOTWEAR AND WOMEN'S APPAREL IN RECENT MONTHS US SHOE WHOSE EYEGLASS UNIT HAS PERFORMED SOMEWHAT BETTER SAID MR SCHULMAN WILL NOT BE REPLACED THE PRESIDENTS OF THE EASY SPIRIT SELBY & CO AND MARX AND NEWMAN BUSINESSES WILL REPORT DIRECTLY TO NOEL HORD PRESIDENT OF US SHOE'S FOOTWEAR OPERATIONS MR SCHULMAN WILL SERVE AS AN ADVISER TO US SHOE MANAGING SPECIAL PRODUCTS OVER THE NEXT TWO YEARS 9306070135 930607 CREDIT RATINGS NORFOLK SOUTHERN CORP NORFOLK VA STANDARD & POOR'S CORP REVISED ITS RATINGS OUTLOOK ON THIS RAIL AND TRUCK TRANSPORT COMPANY TO STABLE FROM NEGATIVE S&P AFFIRMED ITS DOUBLEA SENIOR UNSECURED DEBT RATING ON NORFOLK AND THE TRIPLEA RATING ON NORFOLK'S EQUIPMENT TRUST CERTIFICATES ABOUT 16 BILLION OF DEBT IS AFFECTED S&P SAID THE REVISION IS BASED ON STABLE EARNINGS AND CASH FLOWS AT NORFOLK FAVORABLE PROSPECTS FOR TRANSPORT OF ITS CORE COMMODITIES AND CONTINUED MODERATION OF THE FIRM'S STOCK BUYBACK PROGRAM 9306070134 930607 WHO'S NEWS PRIVATE EXPORT FUNDING CORP PRIVATE EXPORT FUNDING CORP NEW YORK DELCOUR S POTTER 58 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF THIS CONCERN WHICH FINANCES THE PURCHASES OF US EXPORTS BY FOREIGN BORROWERS ALSO ROBERT CARSWELL 64 WAS NAMED CHAIRMAN A POSITION THAT HAS BEEN VACANT SINCE 1986 MR CARSWELL IS A PARTNER AT THE NEW YORK LAW FIRM SHEARMAN & STERLING MR POTTER WAS ACTING CHIEF EXECUTIVE OFFICER FOLLOWING THE RESIGNATION OF FRANK NEE IN MAY AND ALSO HELD THE POSITION OF EXECUTIVE VICE PRESIDENT AND TREASURER 9306070133 930607 BENTSEN IN MOSCOW 36HOUR TOUR ENDS IN YELTSIN LAUGHTER TREASURY SECRETARY'S TRIP AIMS AT BUCKING UP REFORMERS CELEBRATING PRIVATIZATION BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW TREASURY SECRETARY LLOYD BENTSEN STROLLED BY FROZEN BEEF CARCASSES PILED HIGH ON METAL CARTS AT A PRIVATELY OWNED FOOD WHOLESALER HERE TO MAKE A SIMPLE POINT RUSSIA'S EFFORTS TO PRIVATIZE STATEOWNED ENTERPRISES IS THE KEY TO ITS FUTURE PROSPERITY LIKE THE POLITICIAN HE IS MR BENTSEN WALKED BRISKLY THROUGH PREOBRAZHENSKY A FORMERLY STATEOWNED STORAGE AND REFRIGERATION FIRM EXAMINING NEATLY BOXED CHICKENS AND LISTENING TO THE MANAGER BOAST ABOUT HIS PRODUCTIVE WORKERS AND COMPLAIN ABOUT HIS OBSOLETE 38YEAROLD EQUIPMENT BUT THEN MR BENTSEN WHO OFTEN MENTIONS THAT HE WAS A BUSINESSMAN BEFORE HE WAS A SENATOR WENT UPSTAIRS TO QUIZ A MAN NEARLY YOUNG ENOUGH TO BE HIS GRANDSON ABOUT THE NUTS AND BOLTS OF ONE OF THE MOST AMBITIOUS ELEMENTS OF RUSSIA'S CONVERSION TO CAPITALISM MAXIM BOYCKO 34 A DEPUTY TO THE 37YEAROLD DEPUTY PRIME MINISTER WHO OVERSEES PRIVATIZATION ANATOLE CHUBAIS TOLD MR BENTSEN THAT IN APRIL ALONE RUSSIA HAD SOLD STOCK TO THE PUBLIC IN INDUSTRIAL ENTERPRISES THAT EMPLOY ONE MILLION WORKERS ALTOGETHER HE SAID RUSSIAN INDUSTRY EMPLOYS 20 MILLION YOU PRIVATIZED 5 OF RUSSIAN INDUSTRY IN APRIL ASKED LAWRENCE SUMMERS MR BENTSEN'S INTERNATIONAL DEPUTY WITH A FEW CAVEATS MR BOYCKO AGREED MR BENTSEN WAS NOTICEABLY IMPRESSED SEVERAL MINUTES LATER MR BENTSEN WAS STANDING OUTSIDE THE WAREHOUSE TELLING TELEVISION CAMERAS THAT 5 OF RUSSIAN INDUSTRY HAD BEEN PRIVATIZED IN APRIL ALONE I CAN'T RECALL IN HISTORY ANY COUNTRY THAT HAS MADE THAT FAST A MOVE TOWARD PRIVATIZATION HE SAID THE RAPIDITY WITH WHICH THE FACT WHICH MAY OR MAY NOT STAND UP TO VERIFICATION SO QUICKLY BECAME PART OF MR BENTSEN'S POINTS WAS TYPICAL OF HIS FIRST VISIT TO RUSSIA IN THREE YEARS IT WAS A WHIRLWIND 36HOUR STOP AIMED AT BUCKING UP THE SPIRITS OF ECONOMIC REFORMERS PROMOTING PRIVATIZATION AND UNDERSCORING THE NEED TO REDUCE INFLATION TO STABILIZE THE ECONOMY AND SECURE PROMISED INTERNATIONAL AID AT EVERY OPPORTUNITY BOTH PUBLIC AND PRIVATE MR BENTSEN CELEBRATED THE PRIVATIZATION EFFORT WHICH US OFFICIALS SEE AS AN IRREVOCABLE STEP TOWARD A MARKET ECONOMY AS WELL AS A WAY TO END GOVERNMENT SUBSIDIES OF INEFFICIENT ENTERPRISES UNDER THE PROGRAM THE GOVERNMENT GIVES EVERY MAN WOMAN AND CHILD VOUCHERS THAT CAN BE USED TO PURCHASE SHARES AT AUCTIONS OR CAN BE SOLD ON THE OPEN MARKET WORKERS AND MANAGERS OF PREOBRAZHENSKY WERE GIVEN 51 OF THE SHARES IN THEIR FIRM THE OTHER 49 WERE SOLD TO THE PUBLIC MANAGEMENT STILL CONTROLS MANY PRIVATIZED COMPANIES BUT IN THIS EXCEPTIONAL CASE SIX OF THE EIGHT DIRECTORS ARE OUTSIDERS THE AUCTIONS ARE PROCEEDING SO FAST THAT RUSSIA IS CREATING SHAREHOLDEROWNED COMPANIES BEFORE ESTABLISHING THE LEGAL OR ACCOUNTING STANDARDS ON WHICH OTHER MARKET ECONOMIES DEPEND HALF THE SMALL BUSINESSES AND BETWEEN 10 TO 15 OF THE LARGER ONES HAVE SOLD SHARES AT VOUCHER AUCTIONS DESPITE ITS ENTHUSIASM THE US SO FAR HAS HAD LITTLE VISIBLE SUCCESS IN PERSUADING OTHER WEALTHY COUNTRIES TO CONTRIBUTE TO PRESIDENT CLINTON'S PROPOSED 2 BILLION FUND TO HELP FINANCE THE PRIVATIZATION EFFORT AND MODERNIZE THE NEWLY PRIVATE COMPANIES ALL OF THE COUNTRIES TODAY ARE HAVING BUDGETARY PROBLEMS SO IT'S DIFFICULT TO KICK IT OFF MR BENTSEN TOLD REPORTERS MR BENTSEN REPORTED THAT THE RUSSIAN OFFICIALS HE MET WERE ENTHUSIASTIC ABOUT THE US INITIATIVE ONE GOAL OF HIS TRIP WAS TO ADVISE KEY RUSSIAN OFFICIALS ON HOW TO MAKE THE PROPOSAL ATTRACTIVE TO SKEPTICAL GOVERNMENTS MR BENTSEN'S VISIT WAS CAPPED BY A 25MINUTE MEETING WITH RUSSIAN PRESIDENT BORIS YELTSIN THAT ALMOST DIDN'T TAKE PLACE MR YELSTIN ABRUPTLY CANCELED AN HOURLONG MEETING PLANNED FOR FRIDAY AFTERNOON AFTER LOBBYING BY MR BENTSEN'S STAFF THE MEETING WAS RESCHEDULED FOR JUST AN HOUR BEFORE THE TREASURY SECRETARY'S PLANNED DEPARTURE SATURDAY MORNING AT THE MEETING A SENIOR TREASURY OFFICAL REPORTED MR BENTSEN NOTED THAT A HOUSE SUBCOMMITTEE RECENTLY APPROVED MR CLINTON'S PLEDGE TO COME UP WITH 18 BILLION IN NEW AID TO RUSSIA AND ITS SISTER REPUBLICS HE THEN QUIPPED TO THE RUSSIAN PRESIDENT YOU CAN UNDERSTAND THE DIFFICULTIES OF DEALING WITH A CONGRESS REFERRING TO MR YELTSIN'S TENSIONS WITH HIS OWN CONGRESS OF PEOPLE'S DEPUTIES MR YELTSIN ROARED WITH LAUGHTER 9306070132 930607 INTERNATIONAL ITALIAN CAR SALES DROP SHARPLY MILAN NEW CAR SALES IN ITALY PLUNGED 28 IN MAY FROM A YEAR EARLIER A REPRESENTATIVE OF THE NATIONAL ASSOCIATION OF CAR MANUFACTURERS SAID THE GROUP SAID THE DROP IN MAY CAME ON THE HEELS OF A 29 DECLINE IN APRIL WHICH MARKED THE WORST YEARONYEAR DROP IN 20 YEARS A TOTAL OF 166292 CARS WERE SOLD IN MAY DOWN FROM 230159 IN MAY 1992 CAR SALES TOTALED 926325 IN THE FIRST FIVE MONTHS OF 1993 DOWN 21 FROM 1173848 A YEAR EARLIER FIAT WHICH PRODUCES FIAT LANCIA AND ALFA ROMEO BRANDS CONTROLLED 47 OF THE DOMESTIC CAR MARKET IN MAY UP SLIGHTLY FROM 45 A YEAR EARLIER 9306070131 930607 CAR REGISTRATIONS FELL 19 IN EUROPE IN MAY CONTINUING A DECLINE BONN NEWCAR REGISTRATIONS CONTINUED A FREE FALL THROUGHOUT MOST OF WESTERN EUROPE LAST MONTH CONFIRMING FEARS THAT 1993 IS HEADED TOWARD THE SHARPEST DECLINE THE INDUSTRY HAS SEEN IN NEARLY TWO DECADES IN MAY CAR REGISTRATIONS IN 17 WESTERN EUROPEAN COUNTRIES WERE DOWN A HEFTY 19 A TOTAL OF 964780 CARS WERE REGISTERED DOWN FROM 1183940 CARS A YEAR EARLIER ACCORDING TO PROVISIONAL FIGURES FROM THE EUROPEAN AUTOMOBILE MANUFACTURERS ASSOCIATION AN INDUSTRY LOBBYING GROUP IN BRUSSELS SOME OF THE SHARPEST DECLINES OCCURRED IN SMALLER MARKETS SUCH AS GREECE WHERE RELATIVELY SMALL SHIFTS TRANSLATE INTO LARGE PERCENTAGE CHANGES WHAT WORRIES ANALYSTS MORE IS THE CONTINUED WEAKNESS OF EUROPE'S PREMIER MARKETS LAST MONTH REGISTRATIONS PLUNGED 28 IN ITALY AND 23 IN SPAIN THIS MARKET IS INCREDIBLY GRIM SAID PETER SCHMIDT OF AUTO INDUSTRY DATA LTD A BRITISH CONSULTING FIRM ALL THE MANUFACTURERS ARE CONFRONTED BY A MARKET THAT'S TUMBLING FAR FASTER THAN ANYONE ANTICIPATED BRITAIN WAS THE ONLY MARKET THAT POSTED AN INCREASE LAST MONTH WITH REGISTRATIONS UP 91 I BELIEVE THE UK WOULD BE IN NEGATIVE AS WELL SAID MR SCHMIDT IF IT WEREN'T FOR THE FACT THAT MANY MANUFACTURERS ARE USING INCENTIVES TO PUSH THEIR EXCESS STOCK ONE METHOD AUTO MAKERS USE TO UNLOAD SURPLUS CARS IS TO REGISTER THE VEHICLES THEMSELVES AND THEN SELL THEM TO DEALERS AT CUT RATES THE CARS ARE TECHNICALLY USED EVEN THOUGH THEY MAY HAVE NEVER BEEN DRIVEN JOHN LONGHURST AN AUTO ANALYST AT JAMES CAPEL & CO IN LONDON SAYS REGISTRATION FIGURES MAY BE DOCTORED A LITTLE USING SUCH METHODS BUT HE CONTENDS THE UPTURN IN BRITAIN IS GENUINE ONE THING MANY ANALYSTS AGREE ON IS THAT THE CURRENT DROP IN SOME OF EUROPE'S BIGGEST MARKETS WILL CONTINUE AT LEAST THROUGH THE BALANCE OF 1993 IN GERMANY EUROPE'S LARGEST MARKET REGISTRATIONS PLUNGED 20 IN MAY SOME ARE NOW PREDICTING THE GERMAN MARKET COULD BE DOWN AS MUCH AS 25 FOR THE YEAR AS A WHOLE 9306070130 930607 AMEX TRADING WARRANTS TIED TO EUROPEAN FIRMS NEW YORK THE AMERICAN STOCK EXCHANGE ON FRIDAY BEGAN TRADING WARRANTS TIED TO THE STOCK PRICES OF 200 MAJOR EUROPEAN COMPANIES THE WARRANTS ARE BASED ON THE FINANCIAL TIMESSTOCK EXCHANGE EUROTRACK 200 INDEX THE INDEX MEASURES THE AGGREGATE STOCKPRICE PERFORMANCE OF 200 COMPANIES IN 14 EUROPEAN COUNTRIES AND INCLUDES THE LEADING STOCKS IN CONTINENTAL EUROPE AND THE LARGEST AND MOST ACTIVELY TRADED ISSUES ON THE LONDON STOCK EXCHANGE THE 28 MILLION WARRANTS WERE ISSUED BY SHEARSON LEHMAN BROTHERS AND UNDERWRITTEN BY ITS LEHMAN BROTHERS INVESTMENT BANKING UNIT THEY WILL TRADE UNDER THE SYMBOL EXAWS EXPIRE ON JUNE 4 1996 AND MAY BE REDEEMED ANY DAY PRIOR TO EXPIRATION 9306070129 930607 WHO'S NEWS JOHN LAMBLE IS NAMED CHAIRMAN OF STATE BANK OF NEW SOUTH WALES SPECIAL TO THE WALL STREET JOURNAL SYDNEY STATE BANK OF NEW SOUTH WALES LTD NAMED JOHN LAMBLE AS CHAIRMAN FOLLOWING THE RETIREMENT OF FORMER CHAIRMAN DAVID GREATOREX MR LAMBLE IS A FORMER CHIEF EXECUTIVE OF THE NATIONAL ROADS AND MOTORISTS ASSOCIATION AND IS A DIRECTOR OF MACQUARIE BANK LTD MR GREATOREX HAS BEEN CHAIRMAN OF THE STATE GOVERNMENTOWNED BANK SINCE 1988 HE STEPS DOWN JUNE 21 PETER COLLINS NEW SOUTH WALES TREASURER SAID MR LAMBLE'S EXPERIENCE IN RETAIL MARKETING DURING HIS 25 YEARS WITH NRMA WILL HELP STATE BANK'S EFFORTS TO EXPAND AS A RETAIL BANK MR COLLINS SAID THE BANK'S CABINET REAPPOINTED JOHN VALDER AS DEPUTY CHAIRMAN IN ADDITION TO MAKING THREE NEW APPOINTMENTS TO THE STATE BANK BOARD THE NEW APPOINTEES ARE HELEN NUGENT A DIRECTOR OF MERCENTILE MUTUAL HOLDINGS LTD GAYE HART EXECUTIVE DIRECTOR OF UNICEF AUSTRALIA AND TOM GILES A FORMER MANAGING DIRECTOR OF UNITED PERMANENT BUILDING SOCIETY LTD 9306070128 930607 US DISMISSES AIRLINES' PLANS ON UK ROUTES BIDS BY UNITED NORTHWEST SOUGHT TO SHIFT RIGHTS TO MORE LUCRATIVE CITIES BY GREGORY N RACZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON UNITED AIRLINES AND NORTHWEST AIRLINES SUFFERED A SETBACK IN THEIR BIDS TO BUY USAIR'S UNITED KINGDOM ROUTES AND SHIFT THEM TO MORE LUCRATIVE ROUTES THAT THEY CURRENTLY DON'T SERVE THE TRANSPORTATION DEPARTMENT DISMISSED THE PENDING APPLICATIONS FOR THE ROUTES BECAUSE THE CARRIERS WANTED TO SWITCH THEM TO MORE PROFITABLE US CITIES THE USAIR ROUTES SERVE LONDON FROM PHILADELPHIA BALTIMORE AND CHARLOTTE NC UNITED A SUBSIDIARY OF UAL CORP WANTED TO SWITCH THE PHILADELPHIA ROUTE TO CHICAGO NORTHWEST OWNED BY CLOSELY HELD WINGS HOLDINGS INC WANTED TO SWITCH THE BALTIMORE ROUTE TO DETROIT BUT THE GOVERNMENT REJECTED THE PLANS SAYING THE CHANGES WOULD VIOLATE A US AVIATION AGREEMENT WITH BRITAIN THE AIRLINES HAD SAID THEY WERE PUSHING FOR A LIBERALIZATION OF THE AGREEMENT HOWEVER THE DEPARTMENT IS TRYING TO CHANGE THE WAY ROUTES ARE ALLOCATED AND MAY PUT OFF AWARDING THE USAIR ROUTES ON JUNE 15 IT WILL RESUME TALKS WITH BRITAIN AIMED AT BROKERING A NEW LIBERAL AVIATION AGREEMENT A NEW PACT ACCORDING TO THE DEPARTMENT WILL CREATE MORE OPPORTUNITIES FOR ALL OF OUR CARRIERS AND MORE CORRESPONDING BENEFITS FOR OUR COMMUNITIES AND THE TRAVELING PUBLIC UNTIL THEN THE DEPARTMENT SAYS IT ISN'T INCLINED TO NEGOTIATE GREATER ACCESS ON A PIECEMEAL BASIS INDUSTRY ANALYSTS SAID THE DECISION ON THE ROUTE PROPOSALS WASN'T TOO SURPRISING AND DIDN'T DO MAJOR HARM TO UNITED OR NORTHWEST THE TWO AIRLINES BECAME INTERESTED IN THE ROUTES IN MARCH WHEN TRANSPORTATION SECRETARY FEDERICO PENA CLEARED BRITISH AIRWAYS TO BUY A 199 VOTING STAKE IN USAIR FOR 300 MILLION ON CONDITION THAT USAIR SELL OFF THE THREE ROUTES IN TURNING DOWN THE UNITED AND NORTHWEST APPLICATIONS THE DEPARTMENT SAID IT WOULD ALLOW THREE WEEKS FOR INTERESTED AIRLINES TO FILE FURTHER APPLICATIONS FOR THE THREE ROUTES BUT THE PHILADELPHIALONDON ROUTE MUST SERVE THOSE TWO CITIES THE BALTIMORE AND CHARLOTTE ROUTES CAN BE SWITCHED BUT ONLY TO CERTAIN CITIES SPECIFIED IN THE AVIATION AGREEMENT ONE WINNER IN FRIDAY'S DECISION MAY BE AMR CORP'S AMERICAN AIRLINES AMERICAN HAS ALREADY FILED APPLICATIONS TO FLY THE LONDON ROUTE FROM PHILADELPHIA AND TO SWITCH THE BALTIMORE AND CHARLOTTE ROUTES TO RALEIGHDURHAM NC AND NASHVILLE TENN TWO AIRPORTS ELIGIBLE UNDER THE AGREEMENT UNITED SAID THE DECISION REPRESENTS A SUBSTANTIAL LOST OPPORTUNITY FOR INCREASED EMPLOYMENT IN THE US AND MORE CONVENIENT ACCESS TO LONDON FOR THE TRAVELING PUBLIC WITH THE DISMISSAL OF UAL'S BID THE TRANSPORTATION DEPARTMENT DISMISSED THE ONE APPLICATION THAT BY A WIDE MARGIN WOULD HAVE PRODUCED THE MOST PUBLIC AND ECONOMIC BENEFITS THE AIRLINE SAID UNITED ALSO ASSERTED THAT THE CLEAR WINNER IN THIS DECISION IS BRITISH AIRWAYS A NORTHWEST SPOKESMAN SAID THE AIRLINE WAS VERY DISAPPOINTED WITH THE ROUTE DENIAL WE'VE BEEN PURSUING THE RIGHT TO OFFER DETROITLONDON SERVICE FOR A LONG TIME HE SAID DETROIT IS OUR LARGEST HUB SEPARATELY THE NORTHWEST SPOKESMAN SAID THE AIRLINE WILL CONTINUE ITS LAWSUIT CONTESTING THE AWARD OF THE EXISTING DETROITLONDON ROUTE A FORMER PAN AM ROUTE TO DELTA AIR LINES WE FEEL CONFIDENT THAT WE WILL ONE DAY BE ABLE TO SERVE THAT ROUTE HE SAID AMERICAN SAID IT IS OBVIOUSLY PLEASED WITH THE DEPARTMENT'S MOVE OUR ARGUMENT HAS BEEN ALL ALONG THAT THE DEPARTMENT NEEDS TO SEE THE MERIT OF APPROVING APPLICATIONS THAT FIT THE BILATERAL AGREEMENT SAID A SPOKESMAN FOR AMERICAN A USAIR SPOKESMAN SAID THE AIRLINE REMAINS HOPEFUL THAT IT WILL BE ABLE TO SELL ITS ROUTES THE USAIR ROUTES ARE PRIMARILY COVETED BY CARRIERS THAT WANT TO EXPAND THEIR PRESENCE OVERSEAS DURING THE PAST DECADE AMERICAN DELTA AND UNITED TOGETHER PUT UP MORE THAN 28 BILLION TO BUES TO LATIN AMERICA EUROPE AND THE PACIFIC FROM CASHSTRAPPED CARRIERS THE US CARRIERS WHICH HAVE HAD LOSSES OF 10 BILLION SINCE 1989 ARE BETTING THAT GRABBING A LARGER SHARE IN LUCRATIVE MARKETS ABROAD WILL PROPEL THEM OUT OF THEIR FINANCIAL DECLINE 9306070127 930607 WHO'S NEWS WENDTBRISTOL HEALTH SERVICES CORP WENDTBRISTOL HEALTH SERVICES CORP COLUMBUS OHIO SHELDON A GOLD CHIEF FINANCIAL OFFICER WAS GIVEN THE ADDITIONAL RESPONSIBILITIES OF PRESIDENT AND CHIEF EXECUTIVE OFFICER HE SUCCEEDS MARVIN D KANTOR 65 YEARS OLD WHO REMAINS CHAIRMAN MR GOLD 50 IS ALSO A DIRECTOR OF THIS PERSONAL HEALTH CARE SERVICES COMPANY REED A MARTIN 37 WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER A NEW POST HE HAS BEEN SENIOR VICE PRESIDENT IN CHARGE OF OPERATIONS AND REMAINS A DIRECTOR HAROLD T KANTOR 60 MARVIN KANTOR'S BROTHER WAS NAMED VICE CHAIRMAN A NEW POSITION HE HAS BEEN A SENIOR VICE PRESIDENT AND CONTINUES AS A DIRECTOR NAMED VICE PRESIDENTS WERE REBECCA DUNAWAY 33 WHO REMAINS IN CHARGE OF THE COMPANY'S DIAGNOSTICS CENTER LISA BALDRIDGE 37 WHO CONTINUES AS HEAD OF THE PHARMACY UNIT AND SUSAN WOOLARD 38 WHO CONTINUES TO RUN DATA SERVICES 9306070126 930607 SALOMON IN UK LOSES 103 MILLION IN ALLEGED FRAUD BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL LONDON SALOMON BROTHERS UK LTD ONE OF THREE LONDONBASED SUBSIDIARIES OF SALOMON BROTHERS INC SAID THAT IT LOST ABOUT 67 MILLION 103 MILLION BECAUSE OF A FRAUD COMMITTED BY AT LEAST ONE OF ITS CLERICAL EMPLOYEES TWO SALOMON EMPLOYEES HAVE BEEN ARRESTED ONE AT HIS HOME IN SOUTH LONDON AND THE OTHER AT THE US SECURITIES FIRM'S LONDON HEADQUARTERS AND SALOMON HAS ISSUED A WRIT AGAINST ONE OF THEM TO HELP EXPEDITE ITS ATTEMPT TO RECOVER THE LOST FUNDS IN ADDITION SALOMON EXECUTIVES SAID THEY ARE ASSISTING THE POLICE IN A CONTINUING INVESTIGATION THAT INCLUDES THE SEARCH FOR TWO NONSALOMON EMPLOYEES SALOMON BROTHERS UK IS THE GILT OR BRITISH GOVERNMENT SECURITIES TRADING ARM OF THE BIG US INVESTMENT BANK THE TWO ARRESTED EMPLOYEES ARE CLERKS WHO WORKED IN THE FIRM'S OPERATIONS DEPARTMENT THAT IS RESPONSIBLE FOR TRANSFERRING FUNDS RECORDING TRADES MAKING SURE THAT SECURITIES SALOMON PURCHASES ARE RECEIVED AND THOSE SOLD ARE DELIVERED TO THE APPROPRIATE BUYERS IN A BRIEF STATEMENT SALOMON SAID THAT NONE OF ITS CLIENTS HAVE SUFFERED ANY LOSS AS A RESULT OF THE FRAUD THE FIRM ALSO SAID THAT IT WAS AGGRESSIVELY SEEKING TO RECOVER THE LOST FUNDS WHICH ACCORDING TO PEOPLE FAMILIAR WITH THE PROBE HAVE BEEN TRANSFERRED FROM BRITAIN AND DEPOSITED IN A LUXEMBOURG BANK SALOMON EXECUTIVES BELIEVE THEY WILL BE ABLE TO RECOVER THE MISSING FUNDS EVEN IF NOT ONE EXECUTIVE SAID THE LOSSES ARE NOT SOMETHING THAT'S VIEWED AS MATERIAL SALOMON'S LONDON OPERATIONS HAVE CAPITAL OF ROUGHLY 1 BILLION 154 BILLION THE THEFT REALLY ISN'T A BIG DEAL SAID ANOTHER OFFICIAL SALOMON EXECUTIVES DECLINED TO SAY WHEN THE ALLEGED THEFT OCCURRED BUT DESCRIBED THE FRAUD AS COMPLEX IN A STATEMENT THE FIRM SAID THAT IT HAD NOTIFIED THE LONDON METROPOLITAN POLICE AND BRITISH REGULATORY AUTHORITIES AS SOON AS THE FRAUD WAS DISCOVERED THE LONDON POLICE SAID THAT THEY HAD ARRESTED TWO MEN ON MAY 27 AND JUNE 1 RESPECTIVELY IN CONNECTION WITH THE ALLEGED THEFT THE TWO WHO ARE SALOMON EMPLOYEES HAVE BEEN RELEASED ON BAIL AND ARE SCHEDULED TO BE FURTHER QUESTIONED JULY 7 A THIRD EMPLOYEE WAS ARRESTED ON JUNE 2 AND RELEASED WITHOUT FURTHER ACTION IN THE FIRST QUARTER SALOMON INC SALOMON BROTHERS' PARENT COMPANY POSTED A NET LOSS OF 102 MILLION OR 110 A SHARE MUCH OF THE LOSS WAS ATTRIBUTED TO BONDTRADING ACTIVITY IN JANUARY AND FEBRUARY WHEN THE FIRM INCURRED A PRETAX OPERATING LOSS OF ABOUT 250 MILLION THOSE LOSSES WERE REDUCED BY PROFITABLE TRADING ACTIVITY IN MARCH AND A 38 INCREASE IN REVENUE FROM INVESTMENTBANKING OPERATIONS 9306070123 930607 DAIICHI TO QUIT VICTOIRE STAKE PARIS JAPAN'S DAIICHI MUTUAL LIFE INSURANCE CO PLANS TO EXCHANGE ITS 5 STAKE IN INSURANCE COMPANY GROUPE VICTOIRE FOR CONVERTIBLE BONDS OF VICTOIRE PARENT CIE DE SUEZ A MOVE THAT MIGHT FACILITATE A SOLUTION TO SUEZ'S WRANGLE WITH UNION DES ASSURANCES DE PARIS OVER VICTOIRE DAIICHI'S DEPARTURE FROM VICTOIRE WHICH SUEZ EXPECTS TO HAPPEN AFTER AN EXTRAORDINARY VICTOIRE SHAREHOLDER MEETING IN JULY FOLLOWS SUEZ'S PURCHASE IN MARCH OF ANOTHER 5 OF VICTOIRE FROM BALTICA HOLDING OF DENMARK WHEN DAIICHI LEAVES SUEZ AND UAP WILL EFFECTIVELY SHARE FULL CONTROL WITH 63 AND 34 RESPECTIVELY THE REMAINING QUOTED SHARES WILL BE BOUGHT BACK BY SUEZ FOLLOWING THE DAIICHI EXCHANGE 9306070122 930607 BANK OF BOSTON HITS ROADBLOCK TO ACQUISITIONS FED'S PRELIMINARY DECISION REJECTS TRANSACTIONS VALUED AT 400 MILLION BY SUZANNE ALEXANDER STAFF REPORTER OF THE WALL STREET JOURNAL THE FEDERAL RESERVE BOARD OF GOVERNORS HAS MADE A PRELIMINARY DECISION AGAINST APPROVING BANK OF BOSTON CORP'S PLAN TO ACQUIRE SOCIETY FOR SAVINGS BANCORP INC AND MULTIBANK FINANCIAL CORP FOR A TOTAL OF 400 MILLION IN STOCK PEOPLE CLOSE TO THE FED'S DELIBERATIONS SAID THE BOARD'S FINAL DECISION BASED ON RECOMMENDATIONS FROM ITS OWN STAFF AND FROM THE BOSTON FEDERAL RESERVE BANK IS EXPECTED AT A MEETING TODAY THE BOARD HAS THE OPTION OF APPROVING ONE OF THE PURCHASES OR CONSIDERING A MODIFIED VERSION OF THE PLAN REGULATORS ARE CONCERNED THAT THE BANK OF BOSTON'S 23 BILLION IN CAPITAL MAY NOT BE ENOUGH TO SUPPORT THE ACQUISITIONS THEY ALSO ARE LEERY ABOUT THE BANK'S ABILITY TO TAKE ON MORE NONPERFORMING LOANS THE PEOPLE SAID BANK OF BOSTON AGREED LAST SUMMER TO ACQUIRE THE TWO SMALLER BANKS IN WHAT WOULD BE THE FIRST MAJOR NEW ENGLAND BANK PURCHASES WITHOUT FEDERAL AID SINCE 1989 SOCIETY FOR SAVINGS OF HARTFORD CONN AND MULTIBANK FINANCIAL OF DEDHAM MASS HAVE COMBINED ASSETS OF ABOUT 5 BILLION AND MORE THAN 75 BRANCHES IN TWO STATES AT MARCH 31 BANK OF BOSTON HAD 316 BILLION IN ASSETS THE FED'S RECOMMENDATIONS WERE REPORTED IN THE BOSTON GLOBE SATURDAY A SPOKESWOMAN FOR THE BANK OF BOSTON DECLINED TO COMMENT PENDING THE FEDERAL RESERVE BOARD'S DECISION WHEN BANK OF BOSTON ANNOUNCED THE NEARLY SIMULTANEOUS ACQUISITION PLANS ANALYSTS HAILED THE MOVE AS A SIGN THAT NEW ENGLAND'S BANKS WERE ON THE MEND BANK OF BOSTON THE REGION'S SECONDLARGEST BANK POSTED LOSSES IN 1990 AND 1991 BECAUSE OF SOURED REALESTATE LOANS AND THE SLUGGISH ECONOMY FOR THE FIRST QUARTER ENDED MARCH 31 THE BANK REPORTED NET INCOME OF 674 MILLION OR 70 CENTS A SHARE AFTER A GAIN FROM ACCOUNTING CHANGES SOCIETY FOR SAVINGS POSTED FIRSTQUARTER PROFIT OF 6 MILLION OR 51 CENTS A SHARE AFTER A GAIN FROM ACCOUNTING CHANGES WHILE MULTIBANK FINANCIAL EARNED NET OF 57 MILLION OR 62 CENTS A SHARE AFTER A GAIN FROM ACCOUNTING CHANGES BOTH BANKS HAVE CAPITAL ABOVE REGULATORY MINIMUMS BUT THE FED IS WORRIED BANK OF BOSTON WILL ADD SUBSTANTIALLY TO ITS NONPERFORMING ASSETS WITH THE PURCHASES PARTICULARLY AT WHAT PEOPLE CLOSE TO THE DELIBERATIONS SAID COULD BE TOO HIGH A PRICE UNDER THE PLAN BANK OF BOSTON PROPOSED TWO SEPARATE STOCK SWAPS VALUED AT ABOUT 200 MILLION EACH AT MARCH 31 BANK OF BOSTON HAD NONPERFORMING ASSETS OF 843 MILLION MULTIBANK FINANCIAL HAD NONPERFORMING ASSETS OF 125 MILLION WHILE SOCIETY FOR SAVINGS HAD NONPERFORMING ASSETS OF 104 MILLION 9306070121 930607 BUSINESS BRIEF REORGANIZATION PLAN FILED BY HILLS STORES IN BANKRUPTCY COURT CANTON MASS HILLS DEPARTMENT STORES INC WOULD PAY 538 MILLION IN CASH AND SECURITIES TO CREDITORS WHO ARE OWED 752 MILLION UNDER A REORGANIZATION PLAN FILED IN US BANKRUPTCY COURT IN NEW YORK IF THE PLAN IS APPROVED BY CREDITORS AND THE COURT THE DISCOUNT RETAILER WOULD BE DISSOLVED AND A REORGANIZED HILLS STORES CO WOULD EMERGE FROM CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS BY MIDSEPTEMBER CHEMICAL BANKING CORP HAS AGREED TO SECURE COMMITMENTS FROM BANKS FOR A 225 MILLION CREDIT LINE FOR THE REORGANIZED COMPANY HILLS SAID HILLS FILED FOR BANKRUPTCYLAW PROTECTION 28 MONTHS AGO BECAUSE IT WAS UNABLE TO SUPPORT THE HEAVY DEBT BURDEN IT INCURRED IN A LEVERAGED BUYOUT IN 1985 THE RETAILER WENT PUBLIC IN 1987 SINCE FEBRUARY 1990 HILLS CLOSED 60 OF ITS 214 STORES AND CUT ITS WORK FORCE TO 18500 FROM ABOUT 27000 THE COMPANY ALSO REVAMPED ITS DISTRIBUTION SYSTEM TO HELP CONTROL COSTS AND REMODELED HALF ITS STORES WILLIAM FRIEND THE COMPANY'S CORPORATE COUNSEL SAID THAT UNDER THE PROPOSAL THERE ARE NO PLANS TO CLOSE ADDITIONAL STORES WE THINK THE PLAN PROVIDES FOR A STRONG COMPANY COMING OUT HE SAID UNDER THE PLAN HILLS WOULD ISSUE 14 MILLION NEW COMMON SHARES SENIOR CREDITORS INCLUDING INVESTMENT FIRMS APOLLO ADVISERS AND EQUITABLE CAPITAL MANAGEMENT CORP WOULD RECOVER AN ESTIMATED 100 OF THEIR CLAIMS IN CASH SENIOR DEBENTURES AND SOME STOCK GENERAL UNSECURED CREDITORS INCLUDING MERCHANDISE AND SERVICE VENDORS WOULD RECEIVE 63 TO 75 OF THEIR CLAIMS AFTER CHOOSING ONE OF THREE CASH AND SECURITIES COMBINATIONS HOLDERS OF HILLS CONVERTIBLE SUBORDINATED DEBENTURE WOULD RECEIVE 3 OF THEIR CLAIMS IN COMMON STOCK COMMON SHAREHOLDERS WOULD RECEIVE TWO WARRANTS TO PURCHASE SHARES OF THE REORGANIZED HILLS FOR EACH 100 SHARES OF OLD COMMON STOCK EACH WARRANT GRANTS THE RIGHT TO PURCHASE ONE SHARE AT A PRICE 50 HIGHER THAN THE REORGANIZED COMPANY'S EQUITY VALUE HILLS SAID IF ALL THE WARRANTS WERE EXERCISED COMMON HOLDERS WOULD HAVE 433000 SHARES 9306070120 930607 MARKETING & MEDIA ADVERTISING YOUNG & RUBICAM ENDS DROUGHT WINNING SEARS'S APPAREL ACCOUNT BY KEVIN GOLDMAN SEARS ROEBUCK & CO ENDED ITS METHODICAL FIVEMONTH SEARCH FOR AN AD AGENCY TO SHAPE A NEW IMAGE FOR ITS ESTIMATED 40 MILLION APPAREL ACCOUNT BY SELECTING YOUNG & RUBICAM THE WIN IS A MAJOR BOOST FOR THE NEW YORK AGENCY WHICH HAS HAD A THREEYEAR DRY SPELL IN EFFORTS TO WIN NEW BUSINESS ITS LAST SIGNIFICANT VICTORY CAME IN JULY 1990 WHEN IT LURED THE 25 MILLION XEROX CORP ACCOUNT AWAY FROM SAATCHI & SAATCHI'S BACKER SPIELVOGEL BATES WPP GROUP'S OGILVY & MATHER HAD SERVED THE ENTIRE SEARS ACCOUNT UNTIL THE CHICAGOBASED RETAILER AT OGILVY'S SUGGESTION DECIDED TO CREATE A SEPARATE EFFORT FOR ITS APPAREL BUSINESS THEN OGILVY WAS DISMISSED FROM THE SEARS REVIEW IN APRIL NOW YOUNG & RUBICAM GAINS A FOOTHOLD IN A MASSIVE ACCOUNT WORTH ABOUT 200 MILLION IN ADVERTISING OVER ALL BUT JOHN H COSTELLO SENIOR EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER OF MARKETING AT THE SEARS MERCHANDISE GROUP UNIT SAID IN AN INTERVIEW HE DOESN'T ANTICIPATE ANY FURTHER CHANGES AMONG SEARS AD AGENCIES OGILVY & MATHER WILL REMAIN THE AGENCY FOR SEARS AUTOMOTIVE AND HOME ACCOUNTS NOW THAT YOUNG & RUBICAM WON THE COVETED ACCOUNT ITS CHALLENGE IS JUST BEGINNING THE CLOSELY HELD SHOP WITH ANNUAL BILLINGS OF 79 BILLION MUST MOLD A NEW IMAGE FOR SEARS AS A MAJOR RETAILER OF MEN'S WOMEN'S AND CHILDREN'S APPAREL MANY THINK OF SEARS AS A PLACE TO SHOP FOR APPLIANCES AND TIRES NOT SNAZZY SHIRTS AND DRESSES YET APPAREL COMPRISED 26 OF SEARS'S 254 BILLION IN REVENUE LAST YEAR FOR THOSE WHO SEE SEARS AS A PLACE TO DRESS THE RETAILER HOPES TO PLACE ITSELF IN THE TONIER RANKS OF JC PENNEY AND MAY DEPARTMENT STORES CO RATHER THAN ALONGSIDE THE LIKES OF KMART SEARS AND YOUNG & RUBICAM ARE TIGHTLIPPED OVER THE DIRECTION OF THE NEW CAMPAIGN WHICH IS EXPECTED TO BREAK IN EARLY FALL WE WOULD LIKE TO KEEP THE COMPETITION GUESSING MR COSTELLO SAYS HE DOES SAY HOWEVER THAT THE OGILVYCREATED SEARS SLOGAN YOU CAN COUNT ON ME WON'T BE USED IN APPAREL ALTHOUGH IT WILL CONTINUE TO BE USED FOR OTHER PRODUCTS WE WERE LOOKING FOR A LONGTERM PARTNER IN ADVERTISING AND MARKETING SAYS MR COSTELLO WHO JOINED SEARS IN APRIL WE WERE IMPRESSED WITH YOUNG & RUBICAM'S STRATEGIC INSIGHTS CREATIVITY AND FOCUS THEY BROUGHT TO THE APPAREL BUSINESS THE TARGET AUDIENCE FOR THE ADS SAYS MR COSTELLO WILL BE THE MIDDLE AMERICAN FAMILY THE ADS WON'T BE CUTTING EDGE OR ODD LIKE THOSE FOR SAY THE GAP INSTEAD SAYS MR COSTELLO SEARS WILL FOCUS ON BEING FASHIONABLE FRANK A ANFIELD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF YOUNG & RUBICAM'S NEW YORK OFFICE WHICH WILL HANDLE THE SEARS ACCOUNT EVEN THOUGH THE AGENCY HAS A CHICAGO OFFICE WHERE SEARS IS BASED CALLS THE WIN A MILESTONE IT IS LESS OF A MILESTONE FOR THE TWO OTHER FINALISTS THAT SEARS REJECTED HAL RINEY & PARTNERS AND WELLS RICH GREENE BDDP WHILE IT IS A DISAPPOINTMENT TO HAL RINEY WHICH SPECIALIZES IN FLAGWAVING HEARTTUGGING AMERICANA ADS SUCH AS THOSE FOR ALAMO RENT A CAR THE YOUNG & RUBICAM WIN IS A SOMEWHAT BIGGER LETDOWN FOR WELLS RICH WHICH IN THE PAST YEAR HAS LOST ACCOUNTS FOR SUNOCO AND ALKASELTZER PLUS COLD MEDICINE KENNETH OLSHAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF WELLS RICH SAYS HE FEELS BADLY FOR HIS SEARS TEAM WHICH WORKED SO HARD HE WOULDN'T SAY HOW MUCH MONEY WAS SPENT ON THE PITCH EXCEPT TO CHARACTERIZE IT AS A LOT SENIOR HAL RINEY EXECUTIVES DIDN'T RETURN PHONE CALLS TO COMMENT ON ITS PITCH WHICH ONE EXECUTIVE SAYS INCLUDED THE SLOGAN NEW SEASON NEW SEARS THE LEAD CREATIVE EXECUTIVE ON YOUNG & RUBICAM'S TEAM IS HELAYNE SPIVAK EXECUTIVE CREATIVE DIRECTOR SHE JOINED THE BIG AGENCY FROM HAL RINEY'S ORGANIZATION IN 1990 GREY ADVERTISING NEW YORK NAMED ONE OF ITS LONGTIME EXECUTIVE VICE PRESIDENTS ROBERT L BERENSON PRESIDENT OF ITS NEW YORK OFFICE A NEW POSITION THE APPOINTMENT SOLIDIFIES MR BERENSON'S POSITION AS SECOND IN COMMAND TO GREY CHAIRMAN AND CHIEF EXECUTIVE ED MEYER MR BERENSON 53 YEARS OLD AND OTHERS AT GREY WERE QUICK TO SAY THE NEW TITLE ISN'T AN OFFICIAL DESIGNATION AS HEIR APPARENT TO MR MEYER 66 ED IS ALL OVER OUR CLIENTS AND THEY LOVE HIM FOR IT MR BERENSON NOTED HE AIN'T GOING ANYWHERE MR BERENSON SAID HE WOULD WORK ON LONGTERM PLANNING FOR THE AGENCY IN ADDITION TO ADMINISTRATIVE AND ACCOUNT DUTIES MR MEYER'S EVENTUAL SUCCESSOR HAS BEEN THE TOPIC OF SOME CURIOSITY IN THE INDUSTRY WITH A REPUTATION AS ONE OF THE HARDEST WORKING AND HIGHEST COMPENSATED EXECUTIVES ON MADISON AVENUE HE IS CREDITED WITH WINNING THE LOYALTY OF CLIENTS SUCH AS PROCTER & GAMBLE GENERAL MILLS'S RED LOBSTER AND DOMINO'S PIZZA BY CATERING TO THEM PERSONALLY GREY SAID MR MEYER'S EMPLOYMENT CONTRACT DOESN'T RUN OUT UNTIL 1997 THE AGENCY'S NEW YORK OPERATIONS CONTRIBUTED 15 BILLION IN BILLINGS OR ROUGHLY 30 OF THE AGENCY'S WORLDWIDE BILLINGS OF 49 BILLION IN 1992 KOOLAID PROMOTION PHILIP MORRIS'S KRAFT GENERAL FOODS IS PROMOTING READYTODRINK KOOLAID BURSTS SOFT DRINKS THIS SUMMER WITH A BIG SAMPLING AND SWEEPSTAKES PROGRAM DOMINO'S PIZZA MELVILLE CORP'S KAY BEE TOY & HOBBY SHOPS AND GENERAL CINEMA'S THEATER CHAIN ARE SET TO DISTRIBUTE FOUR MILLION PRODUCT SAMPLES KIDS CAN REDEEM THE BACK OF A SIXPACK FOR A FREE TOY FROM MATTEL INC THE WINNER OF A GRAND SWEEPSTAKES TO BE ANNOUNCED IN NATIONAL COMMERCIALS CREATED BY GREY ADVERTISING GETS A CUSTOMMADE VIDEO GAME FROM NINTENDO OF AMERICA ANOTHER SEINFELD' ENDORSER JULIA LOUISDREYFUS ELAINE ON THE NBC SITCOM SEINFELD MADE HER DEBUT AS A PRODUCT ENDORSER LAST WEEK IN COMMERCIALS FOR CLAIROL'S NICE 'N EASY HAIR COLOR THE SPOTS ARE THE FIRST WORK FOR THE BRAND BY WPP GROUP'S J WALTER THOMPSON SINCE IT WON THE ACCOUNT FROM OMNICOM GROUP'S DDB NEEDHAM IN MARCH CLAIROL IS A UNIT OF BRISTOLMYERS SQUIBB CO ACCOUNT MANDELBAUM MOONEY ASHLEY SAN FRANCISCO WON THE 12 MILLION ACCOUNT OF BLUE SHIELD OF CALIFORNIA PREVIOUSLY HANDLED BY SAN FRANCISCO SHOP COLEMAN & CHRISTISON 9306070119 930607 ECONOMY MOYNIHAN URGES NO BACKDATING OF TAX BOOSTS ADDITIONAL SPENDING CUTS BY CLINTON ALSO URGED BY SENATE PANEL'S CHIEF BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SENATE'S TOP TAXWRITER SAID PRESIDENT CLINTON'S PROPOSED INCOMETAX INCREASES SHOULDN'T BE RETROACTIVE AND THAT SPENDING SHOULD BE CUT 51 BILLION MORE THAN THE PRESIDENT ORIGINALLY SOUGHT IN THE COMING FIVE YEARS DANIEL MOYNIHAN SENATE FINANCE COMMITTEE CHAIRMAN WHO WILL BE LEADING THE SENATE EFFORT FOR MR CLINTON'S DEFICITREDUCTION PACKAGE SAID YESTERDAY ON ABC NEWS'S THIS WEEK WITH DAVID BRINKLEY THAT THE PROPOSED INCOMETAX INCREASES FOR UPPERINCOME INDIVIDUALS SHOULD TAKE EFFECT JULY 1 1993 SIX MONTHS AFTER THE JAN 1 DATE PROPOSED BY MR CLINTON THE HOUSEPASSED VERSION OF THE PLAN ALSO HAD A JAN 1 EFFECTIVE DATE THE 51 BILLION IN EXTRA SPENDING CUTS WHICH WOULD INCLUDE 35 BILLION OF REDUCTIONS FROM PROJECTED SPENDING FOR MEDICARE IN THE NEXT FIVE YEARS IS AN ATTEMPT TO ANSWER MR CLINTON'S CRITICS IN BOTH PARTIES WHO SAY HIS DEFICITREDUCTION PACKAGE IS TOO HEAVILY WEIGHTED WITH TAX INCREASES THE SPENDING CUTS WOULD COME ON TOP OF MR CLINTON'S PLAN WHICH WOULD TRIM 50 BILLION FROM MEDICARE WE'RE GOING TO HAVE A PROGRAM THAT IS EQUAL PARTS SPENDING REDUCTIONS AND TAXES INCREASES SEN MOYNIHAN SAID THE NEW YORK DEMOCRAT DIDN'T INDICATE HOW THE CUTS WOULD BE MADE BUT HE RULED OUT ONE OPTION WIDELY DISCUSSED MAKING THE UPPERINCOME ELDERLY PAY MORE FOR MEDICARE COVERAGE OF THEIR DOCTOR VISITS CITING OPPOSITION FROM THE MAIN SENIOR CITIZENS' LOBBY GROUP SEN MOYNIHAN'S COMMENTS CAME AT THE START OF A CRITICAL WEEK IN WHICH HE'LL TRY TO COMPLETE WORK WITH CLINTON ADMINISTRATION AND SENATE DEMOCRATIC LEADERS ON A COMPROMISE ECONOMIC PACKAGE THAT SATISFIES THE PARTY'S MORE CONSERVATIVE MEMBERS THE FINANCE COMMITTEE IS EXPECTED TO VOTE NEXT WEEK AND THE FULL SENATE LATER THIS MONTH THE SENATOR SAID HE HAD SPOKEN WITH TREASURY SECRETARY LLOYD BENTSEN WHO WAS IN WHITE HOUSE MEETINGS ON THE ECONOMIC PACKAGE YESTERDAY MORNING SEN MOYNIHAN SAID HE AND SENATE MAJORITY LEADER GEORGE MITCHELL OF MAINE WILL MEET WITH MR CLINTON TODAY WITH CONGRESS BACK FROM A WEEKLONG RECESS THE CHAIRMAN WILL TALK WITH DEMOCRATS ON HIS COMMITTEE TO ENLIST THEIR SUPPORT FOR A REVISED PACKAGE EMERGING YESTERDAY FROM A MEETING WITH PRESIDENT CLINTON AND HIS TOP ADVISERS WHITE HOUSE BUDGET DIRECTOR LEON PANETTA SAID THE ADMINISTRATION IS PREPARED TO NEGOTIATE WITH THE SENATE AS LONG AS THE PRESIDENT'S PRINCIPLES ARE MAINTAINED IN THE OVERALL PLAN THOSE HE SAID INCLUDE MAINTAINING 500 BILLION IN DEFICIT REDUCTION ENSURING THE PACKAGE HITS THE RICH RELATIVELY HARD AND NOT ABANDONING THE TAX ON ENERGY CONSUMPTION AS MEASURED BY BRITISH THERMAL UNITS NOTING THAT THE HOUSE HAD MADE SOME CHANGES TO THE PRESIDENT'S PLAN MR PANETTA SAID WE THINK THERE'LL BE SOME ADDITIONAL MODIFICATIONS ON THE SENATE SIDE BUT IN THE END 90 OF THE PRESIDENT'S PLAN IS GOING TO BE THERE BUT THE HIGHLY VISIBLE DEMOCRATIC DEFECTOR OKLAHOMA SEN DAVID BOREN APPARENTLY REMAINS OUTSIDE THE FOLD DESPITE RECENT CONCILIATORY EXPRESSIONS SEN BOREN A SWING VOTE ON THE FINANCE PANEL GIVEN ITS NARROW SPLIT BETWEEN DEMOCRATS AND REPUBLICANS OPPOSES MR CLINTON'S BTUBASED ENERGY TAX I DON'T INTEND TO VOTE FOR A PACKAGE THAT CONTAINS A BTU TAX HE SAID SATURDAY ACCORDING TO REUTERS NEWS SERVICE IN ADDITION SENATE GOP LEADER ROBERT DOLE OF KANSAS SAID ON NBC NEWS'S MEET THE PRESS YESTERDAY THAT SEN BOREN HAD CALLED HIM TO ARRANGE A MEETING TODAY TO DISCUSS STRATEGY AGAINST THE CLINTON PLAN ANOTHER BAD OMEN FOR THE CLINTON PACKAGE WAS THE DEMOCRATS' LANDSLIDE LOSS IN SATURDAY'S ELECTION FOR A SENATE SEAT FROM TEXAS THOUGH THE DEFEAT OF APPOINTED SEN BOB KRUEGER WAS EXPECTED PARTY LEADERS FEAR THAT DEMOCRATS UP FOR REELECTION NEXT YEAR WILL BE FURTHER SPOOKED AGAINST VOTING FOR HIGHER TAXES THE EFFECTIVE DATE FOR THE INCREASED TAXES ON INDIVIDUALS HASN'T BEEN A MAJOR POINT OF CONTENTION TO DATE ALTHOUGH LAWMAKERS GENERALLY DISLIKE RETROACTIVE TAX CHANGES IT'S NOT CLEAR HOW MUCH SEN MOYNIHAN'S SIXMONTH DELAY WOULD REDUCE THE REVENUE GAIN MR CLINTON HAD COUNTED ON THE PRESIDENT'S VERSION WOULD RAISE 115 BILLION OVER FIVE YEARS BY RAISING THE TOP MARGINAL RATES FOR INDIVIDUALS TO 36 AND 396 FROM THE CURRENT 31 SECRETARY BENTSEN HAS SAID THE DATE IS NEGOTIABLE ON CBS NEWS'S FACE THE NATION YESTERDAY HE SUGGESTED THAT IF THE ECONOMY IS LAGGARD THEN YOU GIVE SOME CONSIDERATION TO THE IDEA MR BENTSEN SAID HE HOPED MR BOREN CAN BE MOLLIFIED BUT SAID THE ADMINISTRATION COULD BYPASS THE FINANCE COMMITTEE TO GET THE TAX PACKAGE TO THE SENATE FLOOR IF IT HAS TO AND HE ADDED WITH A MESSAGE AIMED AT SEN BOREN THAT IF THE TAX PACKAGE FAILED YOU'D HAVE A SERIOUS DANGER OF DROPPING BACK INTO A RECESSION AND A LOSS OF JOBS AND I DON'T THINK ANY SENATOR WANTS THAT ON HIS CONSCIENCE SUPPORTING MR BENTSEN'S COMMENTS THE TREASURY ISSUED A PAPER WARNING OF A RETURN TO THE HIGHDEFICIT UNCONTROLLED BUDGET DRIFT OF THE PAST DECADE IF CONGRESS DOESN'T ENACT THE ADMINISTRATION'S DEFICITREDUCTION BILL PREPARED BY THE TREASURY'S OFFICE OF ECONOMIC POLICY THE ANALYSIS STATES THAT BY 1998 OVERALL ECONOMIC OUTPUT WOULD SHRINK ROUGHLY 50 BILLION A YEAR THE FEDERAL GOVERNMENT WOULD HAVE AN ADDITIONAL 45 BILLION A YEAR IN INTEREST PAYMENTS ON THE DEBT EMPLOYMENT WOULD DECREASE BY 170000 JOBS THE NONINTEREST PORTION OF THE DEFICIT WOULD INCREASE BY 93 BILLION AND AMERICANS' WAGES WOULD FALL BY AN UNSPECIFIED AMOUNT OVER TIME THESE CIRCUMSTANCES WOULD ONLY WORSEN ACCORDING TO THE ANALYSIS IN THE SHORT RUN THE ANALYSIS ADDED FAILURE TO ENACT A BILL WOULD CAUSE SUBSTANTIAL DISRUPTION IN FINANCIAL MARKETS IT PREDICTED THAT LONGTERM INTEREST RATES COULD RISE AS MUCH AS A FULL PERCENTAGE POINT REVERSING MOST OF THE GAINS IN BOND PRICES SINCE THE ELECTION IN TURN IT SAID THE STOCK MARKET COULD DECLINE SHARPLY AS FOR THE MEDICARE SAVINGS SEN MOYNIHAN SAID THE AMERICAN ASSOCIATION OF RETIRED PERSONS OPPOSED PROPOSALS TO SET HIGHER OUTOFPOCKET COSTS FOR UPPERINCOME PEOPLE THEY SAID NO WE CAN'T LIVE WITH THAT' HE SAID THEY DON'T WANT TO DIVIDE THE SENIOR CITIZENS AND I DON'T BLAME THEM DEMOCRATS ARE PARTICULARLY ANXIOUS ABOUT SATISFYING THAT FORMIDABLE LOBBY ITS CONTINUED SUPPORT IS CRUCIAL ESPECIALLY TO COUNTER OPPOSITION FROM REPUBLICANS AND OTHERS TO A SEPARATE PROVISION IN MR CLINTON'S PACKAGE TO RAISE 32 BILLION OVER FIVE YEARS BY RAISING THE TAXABLE PORTION OF BENEFITS FOR UPPERINCOME SOCIAL SECURITY RECIPIENTS RICK WARTZMAN CONTRIBUTED TO THIS ARTICLE 9306070118 930607 LOAN AGREEMENT IS SET FOR RUSSIAN OIL PROJECT SPECIAL TO THE WALL STREET JOURNAL LONDON THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT SAID IT SIGNED ITS FIRST LOAN AGREEMENT FOR A PRIVATESECTOR RUSSIAN OIL AND GAS PROJECT THE BANK SAID THE LOAN FOR 40 MILLION IS FOR THE CHERNOGORSKOYE JOINT VENTURE THE VENTURE IS JOINTLY OWNED BY CHERNOGORNEFT A/O A RUSSIAN OIL PRODUCER AND ALDERMAN/SMITH OVERSEAS INC A USBASED OIL EXPLORATION AND PRODUCTION COMPANY THE LOAN WILL BE USED TO CONSTRUCT OIL FIELD FACILITIES AND TO DEVELOP AN EXISTING WEST SIBERIAN OIL FIELD WHICH HAS RECOVERABLE RESERVES OF 85 MILLION BARRELS AT PEAK PRODUCTION THE FIELD IS EXPECTED TO GENERATE 200 MILLION IN GROSS ANNUAL REVENUE OTHER INVESTORS IN THE PROJECT INCLUDE THE JAPANESE TRADING GIANT ITOCHU CORP WHICH HAS ACQUIRED 20 OF ANDERMAN/SMITH'S EQUITY IN THE PROJECT ALSO THE US IMPORTIMPORT BANK IS FINANCING 85 OF USSOURCED EQUIPMENT COSTS EQUIVALENT TO 44 MILLION 9306070117 930607 INTERNATIONAL WASHINGTON INSIGHT IRAN'S ECONOMIC PROBLEMS MAY ADVANCE US STRATEGIC GOAL OF ISOLATING TEHRAN BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ECONOMIC PRESSURES ON IRAN MAY ACCOMPLISH WHAT THE US HAS HAD ONLY LIMITED SUCCESS IN DOING ISOLATING TEHRAN FROM ITS MAJOR WESTERN TRADING PARTNERS CONCERNED ABOUT IRAN'S ABILITY TO REPAY ITS MOUNTING FOREIGN DEBT THE GERMAN AND FRENCH AGENCIES THAT INSURE FOREIGN TRADE HAVE STOPPED HONORING LETTERS OF CREDIT ISSUED BY SOME OF IRAN'S LARGEST BANKS JAPAN ALSO HAS CURBED THE GRANTING OF FINANCIAL GUARANTEES AND TRADE AND INVESTMENT INSURANCE AND THE VALUE OF JAPANESE EXPORTS TO TEHRAN DROPPED BY HALF IN JANUARY AND FEBRUARY FROM THE FIRST TWO MONTHS OF LAST YEAR US AND OTHER ANALYSTS SAY WASHINGTON HAS LONG SOUGHT TO PERSUADE ITS ALLIES TO CURTAIL TRADE WITH IRAN TO FORCE TEHRAN TO END ITS WEAPONS BUILDUP AND AGGRESSIVE BEHAVIOR WHICH THE US SAYS INCLUDES SPONSORING TERRORISM ASSASSINATIONS AND ATTEMPTS TO DESTABILIZE GOVERNMENTS BUT UNTIL RECENTLY JAPAN AND EUROPEAN NATIONS HAVE DEMURRED INSISTING THEY COULD MODERATE IRAN'S BEHAVIOR BY BUILDING COMMERCIAL TIES BUT NOW HARSH ECONOMIC REALITY MAY CAUSE THE ALLIES TO RECONSIDER A SENIOR US ANALYST SAYS THAT IRAN'S DEBT TRIPLED TO 17 BILLION FROM 1990 TO 1991 AND ROSE TO MORE THAN 20 BILLION LAST YEAR ITS ECONOMY SUFFERS FROM LOW OIL PRICES MISMANAGEMENT DAMAGE SUSTAINED DURING THE BRUTAL IRANIRAQ WAR OF THE 1980S AND PRESSURES RESULTING FROM ONE OF THE WORLD'S HIGHEST BIRTHRATES AS A RESULT SOME ANALYSTS ESTIMATE IRAN IS ABOUT 3 BILLION IN ARREARS ON DEBT PAYMENTS 2 BILLION IS OVERDUE TO GERMANY ABOUT 700 MILLION TO JAPAN AND 150 MILLION TO FRANCE WE NOW MAY SEE A LITTLE MORE CONVERGENCE OF VIEWS WITH US ALLIES ABOUT WHETHER IRAN IS A GOOD INVESTMENT SAYS A SENIOR US ANALYST THE US ARGUMENTS MAY HAVE MORE RESONANCE NOW AND THAT WILL HELP THE POLICY THE MOUNTING PRESSURES COME AT A CRUCIAL TIME FOR IRANIAN PRESIDENT ALI AKBAR HASHEMI RAFSANJANI WHO IS EXPECTED TO BE REELECTED FOR ANOTHER FOURYEAR TERM THIS WEEK MR RAFSANJANI'S EFFORT IN THE PAST FOUR YEARS TO REFORM THE ECONOMY AND FUEL GROWTH HAS RELIED ON ACCESS TO FOREIGN CAPITAL AND INVESTMENT BUT NOW SAYS PATRICK CLAWSON A SENIOR FELLOW AT THE NATIONAL DEFENSE UNIVERSITY I JUST DON'T THINK THE SITUATION OF THE LAST FOUR YEARS IS SUSTAINABLE UNLESS THEY FIND NEW SOURCES OF FUNDS THEY CAN TAP US OFFICIALS HOPE AN ECONOMIC SQUEEZE WILL FORCE IRAN TO SHIFT PRIORITIES THE ANALYSTS DON'T BELIEVE IRAN WOULD CURTAIL ITS NUCLEARWEAPONS PROGRAM OR ITS SUPPORT OF TERRORISM WHICH ISN'T EXPENSIVE TO FINANCE BUT THEY DO HOPE IT COULD PROMPT CUTS IN CONVENTIONALARMS PURCHASES IRAN'S LEADERS HAVE SHOWN A SENSITIVITY TO POPULAR DISCONTENT A YEAR AGO FOLLOWING RIOTING OVER HOUSING SHORTAGES MR RAFSANJANI WENT ON AN IMPORT BINGE PURCHASING BILLIONS OF DOLLARS OF CONSUMER GOODS TO QUELL THE DISCONTENT IRANIAN ECONOMIC CONCERNS ARE COMPOUNDED BY THE POTENTIAL FOR ETHNIC UNREST IN NORTHWESTERN IRAN 15 MILLION TO 20 MILLION AZERIS HAVE ETHNIC TIES TO THE NEWLY INDEPENDENT FORMER SOVIET STATE OF AZERBAIJAN AND IN THE EASTERN PART OF THE COUNTRY THERE ARE MORE THAN TWO MILLION TURKIC PEOPLE WHOSE BRETHREN LIVE IN THE FORMER SOVIET REPUBLIC OF TURKMENISTAN BUT EVEN THOUGH EVENTS SEEM TO BE GOING THE CLINTON ADMINISTRATION'S WAY SEVERAL TESTS OF THE NEW POLICY ARE AHEAD THE US MUST DECIDE WHETHER TO PERMIT BOEING CO TO SELL IRAN 16 COMMERCIAL JET AIRCRAFT IN A PACKAGE VALUED AT 900 MILLION SUCH A SALE WOULD MEAN JOBS AT HOME BUT APPROVAL WOULD SEND A SIGNAL TO US ALLIES THAT WASHINGTON ISN'T SERIOUS ABOUT CRACKING DOWN ON TEHRAN MOREOVER DESPITE US EFFORTS THE WORLD BANK CONTINUES TO MAKE LOANS TO IRAN LAST MARCH OVERRIDING AMERICAN OBJECTIONS THE BANK APPROVED A 165MILLION LOAN TO IRAN'S ELECTRIC POWER INDUSTRY THE INTERNATIONAL LENDING COMMUNITY WILL REGARD IRAN AS MORE CREDITWORTHY TO THE EXTENT IT GETS THE BLESSING OF THE WORLD BANK SAYS MR CLAWSON OF THE NATIONAL DEFENSE UNIVERSITY MARTIN INDYK THE NATIONAL SECURITY COUNCIL'S TOP MIDDLE EAST SPECIALIST INSISTED IN A RECENT SPEECH THAT IN THE ABSENCE OF DRAMATIC CHANGES IN IRAN'S BEHAVIOR THE US WILL KEEP WORKING TO CONVINCE ITS ALLIES THAT IT ISN'T IN THEIR INTEREST TO EASE IRAN'S ECONOMIC SITUATION HELPING IRAN PURSUE NORMAL COMMERCIAL RELATIONS ON ONE LEVEL WHILE THREATENING OUR COMMON INTERESTS ON ANOTHER LEVEL MAKES NO SENSE HE ARGUED 9306070116 930607 ENTERTAINMENT POLITICAL HUMORISTS THRIVE IN CLINTON ERA BY RACHEL KESSLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON MAY BE STRUGGLING WITH THE OUTCRY OVER HIS APPOINTMENTS AND HIS 200 HAIRCUT BUT HE IS GENERATING BIG BUSINESS FOR ONE SEGMENT OF THE ECONOMY POLITICAL HUMORISTS THERE'S NO RECESSION IN THE COMEDY INDUSTRY SAYS ELAINA NEWPORT A WRITERPERFORMER FOR THE MUSICAL COMEDY GROUP THE CAPITOL STEPS THE CAPITOL STEPS PERFORMED 350 LIVE SHOWS IN 42 STATES LAST YEAR AND BUSINESS IS UP 12 FROM LAST YEAR MS NEWPORT SAYS THE GROUP JUST WROTE A SONG DEDICATED TO DROPPED CLINTON APPOINTEE LANI GUINIER CALLED WHEN LANI GOES MARCHING HOME AGAIN POLITICAL COMEDY ONCE CONSIDERED TOO NARROW TO SELL OUTSIDE THE WASHINGTON BELTWAY NOW HAS WASHINGTON PERFORMERS TAKING TO THE ROAD OFTEN PERFORMING AT FUNCTIONS FOR COMPANIES AND TRADE GROUPS POLITICAL HUMOR HAS NEVER BEEN MORE POPULAR SAYS JOHN SIMMONS OF GROSS NATIONAL PRODUCT A GROUP THAT PERFORMS A SHOW CALLED CLINTOONS GROSS NATIONAL PRODUCT PERFORMED FOR PRIVATE AND PUBLIC GROUPS 207 TIMES IN 1992 THAT NUMBER HAS ALREADY BEEN SURPASSED THIS YEAR MR SIMMONS SAYS GNP DOES SKITS ABOUT WHATEVER IS IN THE NEWS AND THE GROUP REWRITES THE JOKES EVERY WEEKEND THE REASON I PICKED DAVID GERGEN AS MY NEW DIRECTOR OF COMMUNICATIONS IS WE FOUND OUT THAT GEORGE STEPHANOPOULOS IS ONLY 13 CRACKS BOB HECK THE ACTOR PLAYING PRESIDENT CLINTON WE WERE VIOLATING CHILD LABOR LAWS COMEDIAN MARK RUSSELL WHO ONCE PERFORMED HIS TOPICAL JOKES AND SONGS ALMOST EXCLUSIVELY IN WASHINGTON NOW IS ON THE ROAD 200 DAYS A YEAR BEFORE SUCH GROUPS AS THE AMERICAN ASSOCIATION OF RETIRED PERSONS INDEED THE VETERAN SATIRIST CALLS HIMSELF THE OFFICIAL RAP ARTIST OF THE AARP HE CREDITS THE MEDIA WITH MAKING POLITICAL HUMOR MORE WIDELY POPULAR LESS THAN 30 YEARS AGO THE NETWORK NEWS LASTED 15 MINUTES NOW WE'RE SWAMPED WITH IT MR RUSSELL SAYS POLITICAL HUMOR WAS ON THE RISE IN THE REAGANBUSH AND ESPECIALLY BUSHQUAYLE YEARS BUT HUMORISTS WERE UNCERTAIN ABOUT A DEMOCRATIC ADMINISTRATION AS IT TURNED OUT BILL CLINTON IS GOOD FOR COMEDY SAYS THE CAPITOL STEPS' MS NEWPORT POLITICAL HUMOR IS POPULAR BEYOND THE BELTWAY SHE ADDS BECAUSE PEOPLE OUTSIDE WASHINGTON LOVE TO LAUGH AT WASHINGTON FOR ABOUT 6000 A SHOW THE CAPITOL STEPS PERFORMS FOR GROUPS FROM THE FASTENERS SOCIETY TO THE SEVENTH DAY ADVENTIST DENTISTS THE GROUP DOES A GOOD JOB IN LEAVING A GOOD FEELING AFTER A COMPANY MEETING SAYS STANLEY KREJCI WHO RECENTLY HIRED IT TO PERFORM FOR LANDMARK SYSTEMS CORP IN VIENNA VA THE COMPANY A COMPUTER SOFTWARE DEVELOPMENT BUSINESS PAID THE GROUP AN EXTRA 1000 TO GET A SPECIAL SONG WRITTEN FOR IT IT WAS A WONDERFUL SONG ABOUT NERDS MR KREJCI SAYS WHEN IT ISN'T TRAVELING THE GROUP LARGELY MADE UP OF FORMER CONGRESSIONAL STAFFERS PERFORMS ON WEEKENDS AT CHELSEA'S A CLUB IN WASHINGTON IT ALSO HAS 12 ALBUMS OUT THE LATEST IS THE JOY OF SAX IN TUNE WITH MR CLINTON'S ELVIS IMAGE IS THE KING'S SONG JAILHOUSE ROCK BUT THE CHORUS ON THE CAPITOL STEPS' VERSION OF THE SONG IS LET'S HUG AND IT ENDS WITH A LIVELY LET'S TAX A NEWER VERSION PLAYING OFF THE NEWS GOES MISTER WILLIE'S SITTIN' IN A BARBER CHAIR GETTIN' WAY TOO BUSHY WHEN IT COMES TO HAIR I FIRED ALL MY TRAVEL STAFF 'CAUSE THEY WEREN'T GOOD AT FLYIN' ME TO BARBERS OUT IN HOLLYWOOD LET'S CLIP GROSS NATIONAL PRODUCT'S CLINTOONS IS A MOCK TOWN MEETING WHERE THE AUDIENCE ASKS QUESTIONS MR HECK WHO IMPERSONATES MR CLINTON RESPONDS ON TOPICS FROM SERBS TO SOCKS WHEN ASKED WHY HE PUT HIS WIFE IN CHARGE OF HEALTH CARE HE ANSWERS BECAUSE SHE TOLD ME TO BUSINESS GROUPS HIRE MR HECK TO PERFORM AND POSE FOR PHOTOS AT CORPORATE FUNCTIONS HE WILL CUSTOMDESIGN THE CLINTON COMMENTS TO FIT THE COMPANY AND SOMETIMES WILL ROAST THE TOP EXECUTIVE IF PEOPLE CAN'T GET THE REAL PRESIDENT THEY'LL TAKE ME MR HECK SAYS THE FULL GNP SHOW GENERALLY COSTS ABOUT 6000 GNP PERFORMS CLINTOONS LOCALLY ON WEEKENDS BEFORE AUDIENCES OF ABOUT 300 A NIGHT A TICKET COSTS 15 IT'S BEEN SOLD OUT FOR 12 WEEKS SAYS MR SIMMONS WHO USED TO PLAY PRESIDENT BUSH AND NOW PLAYS MR STEPHANOPOULOS THE GROUP ALSO MARKETS A BUS TOUR OF WASHINGTON CALLED SCANDAL TOURS WITH ACTORS PLAYING FIGURES INVOLVED IN POLITICAL SCANDALS ON BOARD THE BUS FOR 27 A TICKET THE BUS TAKES TOURISTS TO SITES RANGING FROM WATERGATE TO THE VISTA HOTEL WHERE FORMER WASHINGTON MAYOR MARION BARRY WAS ARRESTED AFTER SMOKING COCAINE OTHERS ARE TAPPING INTO THE POLITICAL HUMOR BUSINESS TO FIND OUT MORE ABOUT HILLARY RODHAM CLINTON CALL THE HILLARY HOTLINE FOR 15 FOR FOUR ISSUES THE HILLARY CLINTON QUARTERLY WILL BRING THE LAUGHS TO YOUR DOORSTEP THE 28PAGE NEWSLETTER HAS SERIOUS STORIES ABOUT THE FIRST LADY AS WELL AS AFFECTIONATE SATIRE AS WRITER FRANK MARAFIOTE CALLS IT THE FIRST ISSUE WAS SENT TO 4000 SUBSCRIBERS AND CIRCULATION OF THE SECOND ISSUE MORE THAN DOUBLED TO 10000 SOME WASHINGTON HUMOR IS BEING CRANKED OUT BEHIND THE SCENES SOME OF THOSE CLEVER LINES BY PRESIDENTS FROM GERALD FORD TO BILL CLINTON HAVE COME FROM A HUMOR MINICONGLOMERATE RUN BY COMEDY WRITER DON PENNY MR PENNY CHAIRMAN OF COMMUNICATIONS COUNSEL SAYS HE HAS WRITTEN HUMOR FOR 400 POLITICIANS IN THE PAST 20 YEARS THE GROUP ALSO WRITES SPEECHES FOR CHIEF EXECUTIVES COACHES PHYSICIANS ON IMPROVING THEIR BEDSIDE MANNER AND HELPS LAWYERS WITH THEIR COURTROOM PRESENTATIONS BUT DON'T LAUGH TOO LOUDLY IT'S ALL A BIG SECRET THE PEOPLE WHO HIRE COMMUNICATIONS COUNSEL PAY 2000 A MONTH FOR TWO TO FOUR PAGES OF FUNNY LINES THAT THEY CAN THEN TAKE CREDIT FOR SO MR PENNY WON'T DISCLOSE HIS BUSINESS CLIENTS OR THE HUMOR HE GIVES THEM HE DOES SAY THAT HIS POLITICAL CLIENTS HAVE INCLUDED KANSAS SEN BOB DOLE NEW JERSEY SEN BILL BRADLEY AND TREASURY SECRETARY LLOYD BENTSEN AND HE CLAIMS THAT HIS COMPANY SUPPLIED PRESIDENT REAGAN WITH 40 LINES A WEEK MR PENNY WHOSE TWO BROTHERS ARE PHYSICIANS ADDS THAT HE THINKS OF HIMSELF AS A DOCTOR A CLIENT HAS A PROBLEM HE SAYS AND WE GIVE A PROGNOSIS HUMOR IS USUALLY THE CURE 9306070115 930607 KEMPER CORP IS IN NEGOTIATIONS TO SELL ITS UNDERACHIEVING BROKERAGE OPERATION BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO INSURANCE GIANT KEMPER CORP IS NEGOTIATING TO SELL ITS UNDERACHIEVING BROKERAGE UNIT KEMPER SECURITIES INC POSSIBLY TO A EUROPEAN BANK JAMES R BORIS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF KEMPER SECURITIES IS SAID TO HAVE TOLD EMPLOYEES OVER AN INTERNAL ADDRESS SYSTEM RECENTLY THAT A SALE MAY OCCUR SOON KEMPER CORP WON'T DISCUSS THE NEGOTIATIONS BUT A KEMPER SECURITIES SPOKESWOMAN CONFIRMED THAT MR BORIS HAD ADDRESSED EMPLOYEES ABOUT THE MATTER MAY 28 SHE SAID MR BORIS BASICALLY REITERATED THE CONTENTS OF A MAY 27 PRESS RELEASE IN WHICH KEMPER CORP SAID IT WAS REVIEWING OFFERS FOR THE SECURITIES UNIT BUT OTHERS WHO HEARD THE ADDRESS SAY MR BORIS WENT FURTHER FOR EXAMPLE SOME EMPLOYEES SAY MR BORIS SAID HISTORICALLY THESE THINGS HAPPEN OVER WEEKENDS LISTENING TO THE ADDRESS ON A FRIDAY MORNING THESE PEOPLE SAY MANY KEMPER EMPLOYEES CONCLUDED THAT A SALE WAS IMMINENT EXECUTIVES AT KEMPER CORP ARE FED UP WITH THE SECURITIES UNIT'S 207 MILLION IN LOSSES SINCE 1982 AND A SERIES OF MULTIMILLIONDOLLAR LEGAL JUDGMENTS AGAINST THE UNIT IN SEPTEMBER AFTER BEING NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF KEMPER CORP STEPHEN TIMBERS WAS QUOTED AS SAYING HE PLANNED TO SELL OR CHANGE ANY KEMPER UNIT THAT WAS UNDERPERFORMING AND MENTIONED THE SECURITIES UNIT AS ONE SUCH DIVISION SPECULATION ABOUT A SALE HAS SWIRLED AT KEMPER SECURITIES EVER SINCE THOSE RUMORS AND THE UNIT'S PROBLEMS HAVE PROMPTED DEFECTIONS BY MORE THAN A DOZEN KEMPER STOCKBROKERS SCORES OF OTHER BROKERS AND SOME OF THE SALES MANAGERS OF KEMPER'S BRANCH OFFICES ARE UNDERSTOOD TO BE NEGOTIATING WITH RIVAL BROKERAGE FIRMS ABOUT JUMPING SHIP TED KAGAN FORMER MANAGER OF KEMPER SECURITIES' SAN FRANCISCO BRANCH LEFT KEMPER LAST WEEK FOR A MANAGEMENT JOB AT PRUDENTIAL SECURITIES A KEMPER RIVAL I'VE BEEN LOYAL TO KEMPER BUT I HAD A FANTASTIC OFFER FROM PRUDENTIAL MR KAGAN SAID RATHER THAN SITTING AND WAITING FOR WHATEVER BUS CAME ALONG I CHOSE TO DECIDE WHICH BUS I WAS GOING TO RIDE ON IN HIS MAY 28 ADDRESS MR BORIS REPORTEDLY SAID THAT KEMPER WAS NEGOTIATING WITH POTENTIAL BUYERS THAT ARE NOT IN THE BROKERAGE BUSINESS ACQUISITION BY A NONBROKERAGE FIRM SUCH AS A BANK WOULD PRESUMABLY MEAN THAT KEMPER'S SUPPORT STAFF AND MANAGEMENT TEAM COULD REMAIN INTACT BY CONTRAST ANY BROKERAGE FIRM THAT BOUGHT KEMPER WOULD PROBABLY ONLY WANT ITS BROKERS AND THEIR CLIENTS THE NAMES MOST PROMINENTLY MENTIONED AS SUITORS FOR KEMPER SECURITIES INCLUDE BANCO SANTANDER OF SPAIN AND NATWEST MARKETS INC THE BROKERAGE UNIT OF NATIONAL WESTMINSTER PLC BRITAIN'S SECONDLARGEST BANK SOME MAJOR US SECURITIES FIRMS ARE ALSO SAID TO HAVE APPROACHED KEMPER SPOKESMEN FOR BANCO SANTANDER AND NATIONAL WESTMINSTER COULDN'T BE REACHED TO COMMENT KEMPER BOUGHT ITS WAY INTO THE BROKERAGE INDUSTRY 10 YEARS AGO BY ACQUIRING FIVE REGIONAL BROKERAGE FIRMS IN CITIES FROM CLEVELAND TO LOS ANGELES IT RESTRUCTURED THE FIVE FIRMS IN 1990 AND CONSOLIDATED THEM UNDER THE NAME KEMPER SECURITIES PERRIN LONG DIRECTOR OF EQUITY RESEARCH AT FIRST OF MICHIGAN CORP ESTIMATED THAT KEMPER SECURITIES IS WORTH 200 MILLION TO 225 MILLIONOR ROUGHLY HALF THE 400 MILLION KEMPER PAID FOR THE FIVE REGIONAL BROKERAGE FIRMS KEMPER WHICH WANTED THE FIRMS AS OUTLETS FOR ITS MUTUAL FUNDS AND OTHER FINANCIAL SERVICES PAID MORE THAN TWICE THE FIRMS' BOOK VALUE ASSETS MINUS LIABILITIES PRICES BEFITTING THE START OF A ROARING BULL MARKET IN STOCKS PROBLEMS AROSE HOWEVER AS EMPLOYEES AT THE FIVE FIRMS SQUABBLED AMONG THEMSELVES AND DUPLICATED WORK FOR INSTANCE CLEVELANDBASED PRESCOTT BALL & TURBEN AND MILWAUKEEBASED BLUNT ELLIS & LOEWI BOTH HAD CHICAGO OFFICES BECAUSE THEIR CLIENT BASES OVERLAPPED BROKERS AT THE TWO FIRMS SOMETIMES ENDED UP COMPETING WITH ONE ANOTHER FOR THE SAME CUSTOMERS KEMPER HAS ALSO BEEN HIT BY LEGAL JUDGMENTS AGAINST SOME OF THE FIRMS IT BOUGHT IN MAY 1990 A FORMER EXECUTIVE AT PRESCOTT BALL WON A 382 MILLION ARBITRATION AWARD IN A CONTRACT DISPUTE IN APRIL 1992 A HOUSTON FEDERAL COURT JUDGE ORDERED PRESCOTT BALL TO PAY A JURY AWARD OF 1374 MILLION FOR FRAUD AND RACKETEERING VIOLATIONS STEMMING FROM ALLEGEDLY PREARRANGED GOVERNMENT SECURITIES TRADES AND TWO WEEKS AGO A FEDERAL JURY IN PORTLAND ORE FOUND KEMPER SECURITIES LIABLE FOR AS MUCH AS 53 MILLION TO INVESTORS IN A PLANTBULB BUSINESS WHOSE STOCK ONE OF ITS FIRMS UNDERWROTE KEMPER PAID THE ARBITRATION AWARD BUT IS CONTESTING THE TWO LEGAL JUDGMENTS IN AN EFFORT TO MAKE THE BROKERAGE OPERATION PROFITABLE MR BORIS PRESIDED OVER AN INTENSE RESTRUCTURING OF THE FIVE FIRMS TWO YEARS AGO YET IN 1992 A BANNER YEAR FOR THE SECURITIES INDUSTRY KEMPER SECURITIES LOST 384 MILLION SALE OF KEMPER SECURITIES TO AN OVERSEAS FINANCIAL INSTITUTION SUCH AS BANCO SANTANDER OR A UNIT OF NATIONAL WESTMINSTER BANK COULD BE COMPLICATED BY THE US SECURITIES LAW'S MANDATED SEPARATION OF COMMERCIAL AND INVESTMENT BANKING BECAUSE OF THE LAW THESE INSTITUTIONS MIGHT BE INTERESTED IN ACQUIRING ONLY THE BROKERAGE FUNCTIONS AND NOT THE INVESTMENT BANKING AND MARKETMAKING FUNCTIONS OF KEMPER SECURITIES ANALYSTS SAID 9306070114 930607 VIETNAM MALAYSIA SIGN NOTES ON OIL EXPLORATION KUALA LUMPUR MALAYSIA VIETNAM AND MALAYSIA SIGNED AND EXCHANGED DIPLOMATIC NOTES ON THE EXPLORATION AND EXPLOITATION OF PETROLEUM IN A DEFINED AREA OF THEIR COMMON WATERS FOREIGN MINISTRY SECRETARY GENERAL AHMAD KAMIL JAFFAR SIGNED ON BEHALF OF MALAYSIA WHILE VIETNAM WAS REPRESENTED BY ITS AMBASSADOR NGO TAT TO THE MALAYSIAN OFFICIAL TOLD NEWSMEN THAT THE EXCHANGE OF DIPLOMATIC NOTES BROUGHT INTO FORCE THE MEMORANDUM OF UNDERSTANDING SIGNED BY THE PRIME MINISTERS OF THE TWO COUNTRIES HERE JUNE 5 1992 HE SAID THE EXPLORATION INVOLVED AN AREA OF 1358 SQUARE KILOMETERS OF THE CONTINENTAL SHELF IN THE NORTHERN PART OF THE EAST COAST OF PENINSULAR MALAYSIA AND SOUTHWEST VIETNAM HE ADDED THE 40YEAR AGREEMENT WHICH TOOK EFFECT FRIDAY WILL BE REVIEWED IF NECESSARY HE SAID SOVEREIGNTY OF THE AREAS WAS A DIFFERENT ISSUE AND WOULD BE DEALT WITH LATER PETRONAS AND PETROVIETNAM THE NATIONAL PETROLEUM CORPORATIONS WILL UNDERTAKE THE PROJECT 9306070113 930607 FORD GM PLAN TO IDLE TWO ASSEMBLY PLANTS REFLECTING SLOW SALES DETROIT FORD MOTOR CO AND GENERAL MOTORS CORP PLAN TO IDLE A TOTAL OF TWO ASSEMBLY PLANTS AND OPERATE ONE SHIFT AT ANOTHER FACILITY THIS WEEK BECAUSE OF SLOW SALES FORD SAID IT IS IDLING FOR ONE WEEK ITS WAYNE MICH CAR ASSEMBLY PLANT WHICH BUILDS THE FORD ESCORT GM SAID IT PLANNED TO IDLE FOR ONE WEEK ITS HAMTRAMCK MICH ASSEMBLY LINE THAT BUILDS THE BUICK RIVIERA AND THE CADILLAC ELDORADO AND SEVILLE ITS ARLINGTON TEXAS ASSEMBLY PLANT WHICH BUILDS THE BUICK ROADMASTER CHEVROLET CAPRICE AND CADILLAC FLEETWOOD BROUGHAM WILL OPERATE ONE SHIFT INSTEAD OF TWO SHIFTS THIS WEEK AS PREVIOUSLY REPORTED CHRYSLER CORP SAID ITS WARREN MICH AND BELVIDERE ILL ASSEMBLY PLANTS ARE TEMPORARILY CLOSED FOR MODEL CHANGEOVER THE BIG THREE AUTO MAKERS HAVE ALL SCHEDULED OVERTIME AT SEVERAL ASSEMBLY PLANTS THIS WEEK ALTOGETHER THE 10 MAJOR COMPANIES THAT MAKE CARS IN THE US PLAN TO BUILD 217157 CARS AND LIGHT TRUCKS THIS WEEK UP 19 FROM THE 213023 BUILT A YEAR AGO FOR ALL OF MAY THE AUTO MAKERS PRODUCED 554455 CARS UP 007 FROM THE 554049 BUILT A YEAR AGO A TOTAL OF 400312 TRUCKS WERE ASSEMBLED IN THE US LAST MONTH UP 13 FROM 354110 A YEAR AGO 9306070112 930607 BUSINESS BRIEF SOCIETE SUISSE DE MICROELECTRONIQUE STRONG RISE IN PROFIT NOTED FOR FIRST FOUR MONTHS OF '93 THE SWISS WATCH GROUP SOCIETE SUISSE DE MICROELECTRONIQUE ET D'HORLOGERIE CONFIRMED IN ZURICH THAT MANAGEMENT TOLD FINANCIAL ANALYSTS THAT PROFIT ROSE 30 TO 50 IN THE FIRST FOUR MONTHS OF THE YEAR EDGAR GEISER FINANCE CHIEF SAID THAT RANGE REPRESENTS BALLPARK FIGURES HE ALSO SAID GROUP SALES REVENUE IN THE FIRST FOUR MONTHS ROSE 10 FROM A YEAR EARLIER AFTER ACCOUNTING FOR DIVESTITURES AS PREVIOUSLY REPORTED GROWTH IN THE COMPANY'S CORE BUSINESS OF WATCHES AND COMPONENTS WAS 15 TO 19 IN THE FIRST FOUR MONTHS MR GEISER SAID FRIDAY THAT ACCORDING TO PRELIMINARY INDICATIONS THAT PACE CONTINUED IN MAY IN 1992 THE COMPANY'S GROUP PROFIT ROSE 64 TO 413 MILLION FRANCS 2887 MILLION ON A 20 RISE IN GROUP SALES TO 285 BILLION FRANCS 9306070111 930607 BUSINESS BRIEF ASSICURAZIONI GENERALI SPA CONSOLIDATED 1992 NET PROFIT ROSE 2 AT ITALIAN INSURER GENERALI ALSO SAID RESULTS IN THE FIRST FEW MONTHS OF 1993 WERE MORE OR LESS IN LINE WITH THOSE OF 1992 NO FURTHER DETAILS WERE AVAILABLE GENERALI SAID THE CONSOLIDATED RESULTS SHOWED A CONSIDERABLE IMPROVEMENT IN ORDINARY OPERATING INCOME THAT WAS PARTLY OFFSET BY A SHARE INCREASE IN SECURITIES PORTFOLIO WRITEDOWNS INVESTMENT INCOME JUMPED 42 TO 5330 TRILLION LIRE 365 BILLION IN 1992 ON THE BACK OF A 32 INCREASE IN INVESTMENTS WHICH ROSE 32 TO A TOTAL OF 647 TRILLION LIRE AT THE END OF 1992 9306070110 930607 BUSINESS BRIEF TAMBRANDS INC SHAREHOLDERS ALLEGE FIRM EXCHIEF MISLED INVESTORS TWO SHAREHOLDERS SUED TAMBRANDS INC AND ITS FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER MARTIN FC EMMETT ALLEGING THAT THE MAKER OF TAMPONS MISLED INVESTORS ABOUT ITS FINANCIAL PROSPECTS THE LAWSUIT FILED IN US DISTRICT COURT IN MANHATTAN CHARGES THAT MR EMMETT WHOM THE BOARD ABRUPTLY OUSTED LAST WEEK TOUTED TAMBRANDS' EARNINGS PROSPECTS IN ORDER TO INCREASE THE VALUE OF THE STOCK OPTIONS INCLUDED IN HIS COMPENSATION PACKAGE TAMBRANDS ANNOUNCED LAST WEEK THAT THE COMPANY'S EARNINGS WOULD BE WELL BELOW A 15 GROWTH ESTIMATE MR EMMETT MADE AT A MEETING WITH FINANCIAL ANALYSTS EARLIER THIS YEAR A SPOKESMAN FOR TAMBRANDS DECLINED TO COMMENT ON THE LAWSUIT MR EMMETT COULDN'T BE REACHED 9306070109 930607 CLUE TO A KILLER ALZHEIMER'S IS LINKED TO THE WAY THE BLOOD TRANSPORTS CHOLESTEROL ONE OF SEVERAL NEW FINDINGS ON DISEASE MAY EXPLAIN PLAQUE IN VICTIMS' BRAINS PINPOINTING A CRITICAL GENE BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL AN ALZHEIMER'S DISEASE RESEARCH FINDING CONSIDERED OUTLANDISH WHEN FIRST REPORTED LATE LAST YEAR IS IGNITING A NEW ASSAULT ON THE BAFFLING MINDDESTROYING BRAIN DISORDER A DUKE UNIVERSITY SCIENTIST SAYS HIS LABORATORY LAST YEAR STUMBLED UPON A STARTLING DISCOVERY PEOPLE BORN WITH A CERTAIN FAIRLY COMMON GENE ARE AT HIGH RISK OF DEVELOPING ALZHEIMER'S LATE IN LIFE THE GENE MAKES A PROTEIN WHOSE SOLE JOB SCIENTISTS HAD BELIEVED WAS TO SHUTTLE CHOLESTEROL IN AND OUT OF CELLS AND TISSUES NOW IT APPEARS THE PROTEIN ALSO CARTS INTO BRAIN CELLS A NORMALLY HARMLESS SUBSTANCE THAT OVER TIME MAY DESTROY MEMORY ALZHEIMER'S RESEARCHERS AGREE IT IS TOO SOON TO KNOW THE FULL IMPLICATIONS OF THE FINDING BUT EVEN THE MOST CAUTIOUS CONCEDE THAT IT OPENS AN ENTIRELY NEW AREA OF RESEARCH INTO DIAGNOSTICS AND THERAPIES FOR A DISEASE THAT AFFLICTS ABOUT FOUR MILLION AMERICANS AND FOR WHICH THERE IS CURRENTLY NO GOOD TREATMENT IF FURTHER RESEARCH DEFINITIVELY FINGERS THE CHOLESTEROLCARRYING PROTEIN AS A CULPRIT IN ALZHEIMER'S WORK WILL TURN TO SEEKING DRUGS TO BLOCK ITS ROLE IN KILLING BRAIN CELLS THE FIND ALSO MIGHT SOMEDAY LEAD TO A BLOOD TEST TO SHOW WHO IS AT RISK OF DEVELOPING THE DISEASE IT'S VERY SUGGESTIVE OF A MAJOR BREAKTHROUGH SAYS JO ANN MCCONNELL VICE PRESIDENT AT THE ALZHEIMER'S ASSOCIATION IN CHICAGO DR MCCONNELL BELIEVES THE DUKE FIND IS SO EARTHSHATTERING THAT OTHER SCIENTISTS SHOULD IMMEDIATELY ATTEMPT TO DUPLICATE IT OR PROVE IT WRONG EARLIER THIS YEAR THE DUKE LAB'S CLAIM WAS SEEN AS JUST ONE OF A FLURRY OF FASCINATING BUT INCONCLUSIVE NEW FINDINGS ABOUT ALZHEIMER'S BUT SINCE EARLY APRIL REPORTS OF NUMEROUS SUPPORTING DISCOVERIES CIRCULATING AMONG SCIENTISTS ARE CONVERTING THE STAUNCHEST OF SKEPTICS SEVERAL DRUG MAKERS ARE COURTING THE DUKE LAB'S LEAD SCIENTIST ALLEN D ROSES HE HAS BEEN INVITED TO PRESENT HIS FINDINGS TO ABBOTT LABORATORIES TO ITALY'S SIGMATAU SPA AND TO A LAB OF BRITAIN'S GLAXO HOLDINGS PLC DR ROSES IS A BRILLIANT BUT CONTROVERSIAL NEUROLOGIST WHOSE IDEAS ABOUT ALZHEIMER'S HAVE OFTEN BEEN AT ODDS WITH MAINSTREAM THINKING THE LINK BETWEEN THE CHOLESTEROLTRANSPORTING PROTEIN AND ALZHEIMER'S WAS FOUND IN A BURST OF RECENT SERENDIPITOUS EXPERIMENTS FOLLOWING 13 YEARS OF ALZHEIMER'S RESEARCH AT HIS LAB SCIENTISTS HAVE LONG KNOWN THAT THE BRAINS OF ALZHEIMER'S VICTIMS ARE LITTERED WITH CLUMPS OF AN INSOLUBLE EPOXYLIKE MATERIAL KNOWN AS BETA AMYLOID BUT WHAT ITS ROLE WAS AS A CAUSE OR MERELY A BYPRODUCT HAS BEEN FAR FROM CLEAR AND HOW THE MATERIAL BUILDS UP IN THE BRAIN HAS BEEN A SUBJECT OF INTENSE SCIENTIFIC RESEARCH ESPECIALLY INTRIGUING SCIENTISTS SAY IS A STUDY BY DR ROSES SHOWING THAT MANY PEOPLE WITH THE COMMON LATEONSET ALZHEIMER'S AFTER AGE 65 OR SO ARE BORN WITH A FORM OF APOE THAT IS PARTICULARLY ADEPT AT BINDING TO BETA AMYLOID THE FINDING SUPPORTS THE NOTION THAT THIS PARTICULAR CHOLESTEROLCARRYING PROTEIN CAN PULL TINY BITS OF AMYLOID FROM THE BLOODSTREAM AND PILE IT UP IN THE BRAIN DR ROSES'S LAB SAYS MOST HEALTHY ELDERLY PEOPLE CARRY DIFFERENT VERSIONS OF APOE THAT DON'T BIND WELL TO BETA AMYLOID SUGGESTING WHY MOST PEOPLE DON'T ACCUMULATE THE BRAIN PLAQUES THE GUESS IS THAT THE ONE FORM OF APOE IS ESPECIALLY POWERFUL AT ACCUMULATING AMYLOID WHILE OTHER FORMS DON'T DR ROSES SAYS WE THINK GETTING ALZHEIMER'S DEPENDS ON WHICH FORM YOU INHERIT WHEN HE PRESENTED HIS WORK AT ANOTHER SCIENTIFIC MEETING LATER IN APRIL AT A NEW YORK HOTEL RESEARCHERS WHO HADN'T PREVIOUSLY HEARD DETAILS OF THE FINDINGS JUMPED TO THEIR FEET PELTING HIM WITH QUESTIONS IN THE HALLWAYS AFTERWARD SEVERAL NOTED ALZHEIMER'S RESEARCHERS BUZZED AROUND DR ROSES SEEKING TO COLLABORATE WITH HIM ON EFFORTS TO VALIDATE OR REFUTE THE FINDINGS ONE ADVISED HIM THAT A COLLEAGUE AT THE UNIVERSITY OF WASHINGTON ALREADY HAD REPRODUCED AN IMPORTANT ASPECT OF THE DUKE FINDING THE COLLEAGUE GERARD D SCHELLENBERG SAYS HIS LAB HAS FOUND A STATISTICALLY SIGNIFICANT LINK BETWEEN THOSE WHO CARRY ONE VERSION OF APOE AND THOSE WHO HAVE ALZHEIMER'S HE DECLINES TO RELEASE DETAILS BECAUSE HE HOPES TO PUBLISH HIS FINDINGS SOON BUT SAYS THEY WERE CLOSE TO WHAT DR ROSES IS REPORTING IT'S CLEARLY A RISK FACTOR DR SCHELLENBERG SAYS PEOPLE WITH THIS PROTEIN CIRCULATING IN THEIR BLOOD ARE AT HIGHER RISK OF DEVELOPING ALZHEIMER'S BUT HE ADDS EXACTLY WHAT THAT MEANS IS FAR FROM CLEAR WE STILL DON'T YET KNOW IF OR HOW APOE ACTUALLY PLAYS A ROLE IN CAUSING THE DISEASE I'D BE VERY CAUTIOUS ABOUT JUMPING TO CONCLUSIONS DESPITE ADVANCES OVER RECENT YEARS IN UNDERSTANDING ALTERATIONS IN THE BRAIN ANATOMY OF ALZHEIMER'S PATIENTS SCIENTISTS ARE STILL BAFFLED AS TO EXACTLY WHY CRUCIAL BRAIN NERVE CELLS OR NEURONS DETERIORATE AND THEN EXPIRE CAUSING LOSS OF MEMORY ABILITY TO FUNCTION AND EVENTUALLY DEATH HENCE THE EXCITEMENT DR ROSES IS STIRRING AFTER YEARS OF NOT GETTING ANYWHERE THERE HAS BEEN A STEADY STREAM OF EXCITING FINDINGS IN THE FIELD OF LATE SAYS ZAVEN F KHACHATURIAN HEAD OF ALZHEIMER'S DISEASE RESEARCH AT THE NATIONAL INSTITUTE OF AGING NOW PEOPLE ARE BEGINNING TO SEE HOW DR ROSES'S WORK MIGHT FIT IN PERHAPS EVEN HELP EXPLAIN A GREAT DEAL IT IS JUST IN THE PAST FOUR YEARS THAT SCIENTISTS HAVE FOUND THAT BETA AMYLOID IS THE MAIN COMPONENT OF THE SENILE PLAQUES FOUND IN AUTOPSIES OF ALZHEIMER'S VICTIMS RESEARCHERS HAVE SPECULATED THAT THE BRAIN PLAQUES FORM WHEN THOUSANDS OF MOLECULES OF AMYLOID ACCUMULATE OVER MANY YEARS PERHAPS BLOCKING NUTRIENTS FROM GETTING TO THE NERVE CELLS AS FOR THE SOURCE OF THE AMYLOID SCIENTISTS INCREASINGLY HAVE ACCEPTED THE NOTION THAT IT FORMS FROM THE ABNORMAL BREAKDOWN OF A PRECURSOR PROTEIN SEVERAL BIOTECHNOLOGY COMPANIES AND NUMEROUS ACADEMIC LABS HAVE BEEN RACING TO IDENTIFY THIS ABNORMAL PROCESS HOPING IT MIGHT LEAD TO NEW DRUGS FOR YEARS DR ROSES HAS ENJOYED RUFFLING THE SCIENTIFIC FEATHERS OF THE ALZHEIMER'S RESEARCH ESTABLISHMENT STUBBORNLY ARGUING THAT SCIENTISTS WERE WRONG TO FOCUS SOLELY ON THE PRECURSOR PROTEIN TO PROVE HIS POINT THE 50YEAROLD DR ROSES WHO RUNS THE JOSEPH AND KATHLEEN BRYAN ALZHEIMER'S DISEASE RESEARCH CENTER AT DUKE UNIVERSITY MEDICAL CENTER IN DURHAM NC SPENT YEARS SCOURING THE GLOBE FOR FAMILIES WHERE TWO OR MORE SIBLINGS DEVELOP ALZHEIMER'S LATE IN LIFE HIS HOPE WAS TO FIND A SHARED GENE WHEN HE FINALLY REPORTED IN 1991 THAT HE HAD PINPOINTED THE APPROXIMATE LOCATION OF A SUSPECT GENE IN FAMILIES WITH LATEONSET ALZHEIMER'S THE FINDING WASN'T GIVEN MUCH CREDENCE NEUROSCIENTISTS WERE ESPECIALLY ANTAGONISTIC TO HIS NOTION THAT LATEONSET ALZHEIMER'S IS A TRAIT OF AGING MUCH LIKE WRINKLING OR HAIR LOSS THAT WILL ARISE IN MOST PEOPLE IF THEY LIVE LONG ENOUGH DR ROSES THEORIZED THAT SOME PEOPLE DEVELOP THE TRAIT EARLIER THAN OTHERS FOR REASONS THAT WEREN'T CLEAR BUT MIGHT BECOME SO IF HE ISOLATED THE GENE MY ONLY PROBLEM WAS I COULDN'T PROVE IT UNTIL I IDENTIFIED THE GENE HE SAYS THAT WAS BEFORE BIOCHEMIST WARREN STRITTMATTER ARRIVED AT THE DUKE UNIVERSITY LAB ABOUT A YEAR AGO DR STRITTMATTER DEVELOPED A TEST TO IDENTIFY NATURAL SUBSTANCES THAT CHEMICALLY BIND TO AMYLOID HIS GOAL WAS TO FIND SOMETHING INVOLVED IN AMYLOID ACCUMULATION IN ONE SERIES OF EXPERIMENTS DR STRITTMATTER SAYS HE WAS ANNOYED TO DISCOVER THE FREQUENT PRESENCE OF WHAT HE THOUGHT WAS AN EXPERIMENTAL CONTAMINANT AFTER FINALLY ISOLATING IT HE FOUND IT WAS APOE I DIDN'T KNOW WHAT IT WAS UNTIL I LOOKED IT UP IN A TEXTBOOK HE RECALLS DISCOVERED ABOUT 20 YEARS AGO THIS CHOLESTEROLCARRYING SUBSTANCE IS ONE OF THE HOTTEST SUBJECTS OF STUDY IN HEART DISEASE SCIENTISTS HAVE FOUND THAT IT IS MADE FROM COMBINATIONS OF THREE DIFFERENT GENES DUBBED E2 E3 AND E4 BY GETTING ONE GENE FROM EACH PARENT A PERSON CAN HAVE ANY ONE OF SIX COMBINATIONS VERY RECENT RESEARCH SHOWS FOR INSTANCE THAT PEOPLE BORN WITH THE E4/E3 COMBINATION HAVE A HIGH RISK OF DEVELOPING A HEART ATTACK THAT'S BECAUSE THAT GENE COMBINATION MAKES A FORM OF APOE THAT ALLOWS CHOLESTEROLRICH DEPOSITS TO CLOG CORONARY ARTERIES BUT THERE WAS NO REASON TO THINK THAT INHERITING A FORM OF APOE HAD ANYTHING TO DO WITH AN INCREASED LIKELIHOOD OF ALZHEIMER'S WHEN I LOOKED UP APOE I FOUND THAT THE GENE FOR IT ALREADY HAD BEEN LOCATED AND ISOLATED DR STRITTMATTER SAYS MOREOVER THE APOE GENE SAT IN THE VERY SPOT WHERE DR ROSES PREVIOUSLY HAD LOCATED THE SUSPECT GENE IN FAMILIES WITH LATEONSET ALZHEIMER'S I HAD KNOWN THE APOE GENE WAS IN THE REGION BUT I HAD NO REASON TO SUSPECT IT HAD ANYTHING TO DO WITH ALZHEIMER'S SAYS DR ROSES THROUGH A SERIES OF EXPERIMENTS HE DR STRITTMATTER AND THEIR DUKE COLLEAGUES FORGED A LINK BETWEEN APOE AND ALZHEIMER'S THEY STUDIED TISSUE SAMPLES FROM 176 DECEASED INDIVIDUALS WHOSE ALZHEIMER'S HAD BEEN CONFIRMED BY AUTOPSY AND FOUND THAT 64 INHERITED AT LEAST ONE COPY OF THE E4 GENE WHILE ONLY 31 OF A GROUP OF HEALTHY PEOPLE DID MOREOVER THEY FOUND THAT PEOPLE WHO INHERIT AN E4/E4 GENE COMBINATION WERE NINE TIMES MORE LIKELY TO DEVELOP ALZHEIMER'S THAN PEOPLE WITH THE E3/E3 VARIANT IN ADDITION HIS STUDY OF SAMPLES FROM AUTOPSIED PATIENTS FOUND THAT ON AVERAGE PEOPLE WITH THE DOUBLE DOSE OF E4 GENES DEVELOPED ALZHEIMER'S AT ABOUT AGE 68 THOSE WITH THE E4/E3 VARIATION AT ABOUT 77 AND THOSE WITH E3/E3 AT ABOUT AGE 85 ANOTHER COLLEAGUE DONALD SCHMECHEL FOUND MORE EVIDENCE INDICTING APOE BY EXAMINING THE AUTOPSIED PATIENTS DR SCHMECHEL FOUND THOSE WITH THE E4/E4 GENE COMBINATION HAD DENSER AND LARGER AREAS OF AMYLOID PLAQUE THAN THOSE WITH OTHER GENE VARIANTS FINALLY IN TESTTUBE EXPERIMENTS WITH RESEARCHERS IN SAN FRANCISCO THE DUKE TEAM FOUND THAT APOE MADE FROM DOUBLE E4 GENES STUCK LIKE KRAZY GLUE TO AMYLOID WHILE THE OTHER APOE FORMS DIDN'T BIND AS WELL DR ROSES ARGUES THAT THESE FINDINGS MAY SUPPORT HIS LONGHELD HYPOTHESIS THAT ALZHEIMER'S DISEASE IS SOMETHING THAT EVENTUALLY ARISES IN ALL HUMANS CARRYING THE E4 GENE MERELY MEANS YOU CAN GET THE DISEASE EARLIER HE SAYS STILL SOME ALZHEIMER'S SCIENTISTS URGE CAUTION I'M NOT CONVINCED BY ANY MEASURE THAT APOE4 IS CAUSATIVE SAYS DENNIS SELKOE A RESEARCHER AT HARVARD UNIVERSITY'S BRIGHAM AND WOMEN'S HOSPITAL AND ONE OF THE WORLD'S PREEMINENT AMYLOID EXPERTS IN FACT EVEN DR ROSES'S DATA SHOWS THAT SOME PEOPLE WITH THE E4 GENES DON'T GET ALZHEIMER'S AND MANY WITH ALZHEIMER'S DON'T HAVE THE E4 VARIANT WHAT'S BECOMING APPARENT IS THAT MANY THINGS CAUSE ALZHEIMER'S BUT APOE LOOKS AS IF IT PLAYS A ROLE IF IT DOES PROVE TRUE DR ROSES SPECULATES DOCTORS MAY USE THE GENE TO IDENTIFY WHO WOULD BENEFIT FROM DRUGS THAT KEEP APOE FROM LOCKING ON TO AMYLOID RICHARD MAYEUX A NEUROLOGIST AT COLUMBIA UNIVERSITY IS BEGINNING A STUDY THAT WILL FOLLOW ABOUT 1500 HEALTHY ELDERLY PEOPLE TO DETERMINE WHETHER ALZHEIMER'S DISEASE CAN BE PREDICTED BASED ON THEIR APOE TYPING WE NEED TO SHOW IF INDEED THIS GENE CAN BE PREDICTIVE DR MAYEUX SAYS WE SHOULD KNOW IN A FEW YEARS 9306070108 930607 BUSINESS BRIEF ALPS ELECTRIC CO ELECTRONICS PARTS CONCERN SAYS PRETAX PROFIT TUMBLED ALPS ELECTRIC CO A MAJOR JAPANESE ELECTRONICS PARTS MAKER REPORTED THAT ITS CONSOLIDATED PRETAX PROFIT PLUNGED 53 TO 744 BILLION YEN 69 MILLION IN THE FISCAL YEAR ENDED MARCH 31 FROM A YEAR EARLIER ALPS SAID IN A STATEMENT THAT IT FACED A SEVERE BUSINESS ENVIRONMENT DURING THE PAST FISCAL YEAR WITH EXTREMELY SLUGGISH DEMAND IN JAPAN AND EUROPE LEADING TO THE LARGESTEVER YEARTOYEAR DROP IN PRODUCTION OF ELECTRONIC GOODS FOR DOMESTIC MAKERS ACCORDING TO INDUSTRY STATISTICS THE ELECTRONIC PARTS MAKER SAID IT SEES ANY RECOVERY OF THE ELECTRONICS MARKET TAKING SOME TIME WITH THE CURRENT FISCAL YEAR OFFERING ONLY MORE OF THE SAME IT NOTED THAT PROMISING NEW TECHNOLOGIES SUCH AS THE DIGITAL COMPACT CASSETTE AND MINIDISK IN THE AUDIO FIELD AND HIGHDEFINITION TELEVISION IN THE VIDEO FIELD HAVE YET TO ATTRACT LARGE NUMBERS OF CONSUMERS 9306070107 930607 BUSINESS BRIEF ENDEVCO INC PLAN TO REORGANIZE COMPANY IS APPROVED BY CHIEF LENDER ENDEVCO INC WHICH SAID IN APRIL THAT IT INTENDED TO FILE FOR CHAPTER 11 BANKRUPTCY PROTECTION ANNOUNCED THAT THE COMPANY'S PRINCIPAL LENDER AND PREFERRED HOLDERS HAVE APPROVED ENDEVCO'S PLAN TO REORGANIZE THE COMPANY AS A RESULT THE DALLAS COMPANY HAS FILED A CHAPTER 11 PETITION WITH A PREPACKAGED REORGANIZATION PLAN IN US BANKRUPTCY COURT IN THE EASTERN DISTRICT OF TEXAS THE PLAN CALLS FOR THE NATURALGAS CONCERN TO CEDE TO LENDERS CERTAIN ASSETS INCLUDING ITS 454MILE PIPELINE SYSTEM IN MISSISSIPPI AND ITS 63MILE SYSTEM IN LOUISIANA TO WIPE OUT 441 MILLION IN DEBT ENDEVCO ALSO WOULD RETIRE 27 MILLION PREFERRED STOCK OUTSTANDING BY PAYMENT OF 45 MILLION IN CASH AND THE ISSUANCE OF A 25 MILLION NOTE TO THOSE HOLDERS UNDER THE PLAN AN INVESTMENT GROUP WOULD PURCHASE 45 MILLION SHARES OF ENDEVCO COMMON OR 366 OF ALL COMMON OUTSTANDING FOR 3 MILLION 9306070106 930607 REPUBLICAN HUTCHISON WINS SENATE SEAT FROM TEXAS WASHINGTON REPUBLICAN KAY BAILEY HUTCHISON DECISIVELY WON THE TEXAS SENATE SEAT VACATED BY TREASURY SECRETARY LLOYD BENTSEN FURTHER CLOUDING THE PROSPECTS FOR PRESIDENT CLINTON'S ECONOMIC PROGRAM IN CONGRESS MS HUTCHISON THE STATE TREASURER WHO STOUTLY OPPOSED NEW TAXES DURING HER CAMPAIGN DEFEATED INTERIM SEN BOB KRUEGER THE DEMOCRAT WHO HAD BEEN APPOINTED TO FILL THE SEAT TEMPORARILY SHE CAPTURED 68 OF THE VOTE AND MR KRUEGER TOOK 32 THE GOP VICTORY WHICH HAD BEEN WIDELY EXPECTED LEAVES THE DEMOCRATS WITH ONLY A 5644 MAJORITY IN THE SENATE THAT MEANS MR CLINTON CAN AFFORD EVEN FEWER DEFECTIONS BY HIS PARTY MEMBERS IN VOTES ON HIS PROGRAMS IT ALSO ENHANCES THE GOP'S CHANCES OF MAINTAINING FILIBUSTERS WHEN IT WANTS TO STOP CLINTON LEGISLATIVE INITIATIVES IT TAKES 60 VOTES TO END A FILIBUSTER THE 49YEAROLD MS HUTCHISON HAD CAMPAIGNED WITH PARTICULAR VIGOR AGAINST MR CLINTON'S PROPOSED BROADBASED ENERGY TAX AND VOWED TO TRY TO KILL THE TAX APPEARING YESTERDAY ON CBS'S FACE THE NATION MR BENTSEN PLAYED DOWN THE GOP VICTORY BOTH OF THE CANDIDATES WERE OPPOSING THE PRESIDENT'S BUDGET RECONCILIATION AND THE BTU TAX THERE WERE NO DIFFERENCES IN THAT REGARD HE ATTRIBUTED THE OUTCOME TO SEN KRUEGER'S POOR POLITICAL SKILLS 9306070105 930607 BAYER UNIT PLEADS GUILTY TO CANADIAN BID CHARGES OTTAWA CHEMAGRO LTD A CANADIAN UNIT OF THE GERMAN CHEMICAL CONCERN BAYER AG PLEADED GUILTY TO CHARGES THAT IT CONSPIRED TO RIG BIDS ON PROVINCIAL GOVERNMENT INSECTICIDE CONTRACTS CHEMAGRO AGREED TO PAY A FINE OF TWO MILLION CANADIAN DOLLARS US16 MILLION TO SETTLE THE CHARGES THE QUEBEC SUPERIOR COURT JUDGE WHO HEARD THE CASE RESERVED JUDGMENT PENDING RECEIPT OF ADDITIONAL DOCUMENTATION A CHEMAGRO SPOKESMAN DECLINED COMMENT ON THE CASE BECAUSE IT IS STILL BEFORE THE COURT THE CANADIAN GOVERNMENT'S ANTITRUST DEPARTMENT BROUGHT BIDRIGGING CHARGES AGAINST TORONTOBASED CHEMAGRO IN NOVEMBER AFTER IT WAS ADVISED OF THE PRACTICE BY ANOTHER PARTICIPANT IN THE SCHEME ABBOTT LABORATORIES LTD MONTREAL THE GOVERNMENT DIDN'T PROSECUTE ABBOTT BECAUSE IT VOLUNTARILY BROUGHT THE MATTER TO THE GOVERMENT'S ATTENTION ABBOTT A SUBSIDIARY OF ABBOTT LABORATORIES OF ABBOTT PARK ILL AGREED TO PAY MORE THAN C21 MILLION IN COMPENSATION TO THE ONTARIO AND QUEBEC GOVERNMENTS ABBOTT AND CHEMAGRO ARE THE MAJOR DISTRIBUTORS IN CANADA OF THE INSECTICIDE BACILLUS THURINGIENSIS OR BT WHICH IS USED TO COMBAT SPRUCE BUDWORMS GYPSY MOTHS AND OTHER FOREST INSECTS 9306070104 930607 ECONOMY US PAYROLL GROWTH OF 209000 SHOWS REBOUND EXCEPT IN MANUFACTURING BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON NEW JOBMARKET DATA SUGGEST THE ECONOMY ISN'T AS WEAK AS MANY THOUGHT AND SOME ECONOMISTS ARE NOW FORECASTING THAT IT WILL GROW AT A 3 ANNUAL RATE IN THE SECOND QUARTER RATHER THAN THE 2 RATE THEY HAD EXPECTED THE LABOR DEPARTMENT ON FRIDAY SAID 209000 NEW JOBS WERE CREATED IN MAY THAT GAIN HELPED TO PUSH THE UNEMPLOYMENT RATE DOWN TO 69 A SHADE LOWER THAN THE 7 REGISTERED IN THE PRIOR THREE MONTHS AND THE BEST PERFORMANCE IN A YEAR AND A HALF THE EMPLOYMENT LEVEL NOW EXCEEDS THE JUNE 1990 PRERECESSION JOBS PEAK IN ADDITION THE DEPARTMENT RELEASED ITS ANNUAL BENCHMARK REVISIONS WHICH SHOWED THAT JOB GROWTH BETWEEN MARCH 1991 AND APRIL 1993 WAS STRONGER THAN FIRST REPORTED ROUGHLY 14 MILLION NEW JOBS WERE CREATED INSTEAD OF THE 969000 INITIALLY ESTIMATED THINGS AREN'T AS GLOOMY AS SO MANY PEOPLE THINK SAID BRUCE STEINBERG SENIOR ECONOMIST FOR MERRILL LYNCH & CO IN NEW YORK BUT THE STATE OF THE ECONOMY IS STILL FAR FROM ROSY A CHUNK OF MANUFACTURING JOBS DISAPPEARED IN MAY THE THIRD STRAIGHT MONTH IN WHICH PAYROLLS DECLINED IN THAT SECTOR SINCE FEBRUARY MANUFACTURERS HAVE CUT 133000 JOBS AND ASIDE FROM A 67000JOB JUMP IN CONSTRUCTION DURING THE MONTH MUCH OF THE JOB GAINS OCCURRED IN THE SERVICE INDUSTRY SERVICE JOBS TEND TO PAY LESS AND PROVIDE FEWER BENEFITS THAN MANUFACTURING JOBS ANALYSTS SAY MANUFACTURERS HAVE BEEN HESITANT ABOUT ADDING PERMANENT WORKERS FOR A VARIETY OF REASONS FOR ONE THEY ARE FOCUSING HARD ON IMPROVING PRODUCTIVITY TO SAVE COSTS BEFORE HIRING NEW WORKERS PRODUCTIVITY GAINS SEEM TO COME MORE EASILY IN MANUFACTURING THAN IN SERVICES IN ADDITION FACTORIES ARE TAKING ADVANTAGE OF TEMPORARY WORKERS AND USING FLEXIBLE WORK SCHEDULES TO DEAL WITH FLUCTUATIONS IN DEMAND ROBERT COMBS DIRECTOR OF CORPORATE COMMUNICATIONS FOR DEERE & CO SAID THE FARMEQUIPMENT MAKER HAS NO PLANS FOR HIRING NEW WORKERS EVEN THOUGH SALES AND PRODUCTION HAVE PICKED UP CONSIDERABLY THIS YEAR AFTER A TWOYEAR SLUMP WHEN BUSINESS WAS SLOW HE EXPLAINED DEERE IDLED PLANTS FOR A FEW WEEKS DURING THE YEAR BUT KEPT EXISTING WORKERS NOW THAT BUSINESS HAS PICKED UP WE JUST WILL CONTINUE WORKING DURING THOSE WEEKS MR COMBS SAID THE RESULT NO NEW WORKERS NEEDED WORKERS' EARNINGS ARE UP MANUFACTURERS ALSO HAVE BEEN WORKING THEIR WORKERS HARD AVERAGE HOURS IN MANUFACTURING HELD STEADY AT 415 HOURS IN MAY THE HIGHEST LEVEL SINCE 1966 THE EXTRA WORK SEEMS TO BE PAYING OFF AVERAGE HOURLY EARNINGS ROSE BY SIX CENTS LAST MONTH AND WEEKLY EARNINGS CLIMBED 639 SUCH GAINS BODE WELL FOR CONSUMER SPENDING AMERICANS HAVE BEEN BUYING MORE CARS AND HOMES OVER THE PAST FEW MONTHS AND THE ADDED INCOME MAY MEAN THEY WILL BE WILLING TO LOOSEN THEIR PURSE STRINGS EVEN MORE LAURA TYSON THE PRESIDENT'S CHIEF ECONOMIC ADVISER SAID THE NEW SIGNS OF GROWTH COULD MEAN THAT THE ECONOMY WILL GROW BETWEEN 25 AND 3 THIS YEAR AFTER EXPANDING 21 IN 1992 MR STEINBERG OF MERRILL LYNCH SAID HE HAS RAISED HIS FORECAST FOR GROWTH IN THE SECOND QUARTER TO 3 HIS ESTIMATE HAD BEEN CLOSER TO 2 AFTER THE DISAPPOINTING 09 ANNUAL GROWTH RATE THE ECONOMY EXPERIENCED IN THE FIRST QUARTER SEPARATELY THE COMMERCE DEPARTMENT SAID FACTORY ORDERS DROPPED 03 IN APRIL TO 25353 BILLION UNFILLED ORDERS ALSO DECREASED SUGGESTING THAT MANUFACTURING EMPLOYMENT WILL REMAIN LACKLUSTER BECAUSE FACTORIES ARE HAVING A FAIRLY EASY TIME MEETING DEMAND WITH THEIR CURRENT WORK FORCES ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS THE FIGURES ARE SEASONALLY ADJUSTED MANUFACTURERS IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED 9306070103 930607 US AUTO MAKERS PLANNING TO INCREASE THIRDQUARTER PRODUCTION BY 177 BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT US AUTO MAKERS PLAN TO BOOST THIRDQUARTER OUTPUT BY 177 FROM THE YEAREARLIER LEVEL A SIGN THAT THEY BELIEVE THE RECENT SURGE IN VEHICLE SALES IS SUSTAINABLE THE AUTO MAKERS ARE PLACING THEIR LARGEST BETS ON CONTINUED STRONG SALES OF MINIVANS PICKUP TRUCKS AND SPORTUTILITY VEHICLES LIGHTTRUCK SALES HAVE BEEN DRIVING THE MARKET MUCH OF THE YEAR THE RESULT US AUTO MAKERS PLAN TO BUILD A RECORD 1042661 LIGHT TRUCKS IN THE JULY THROUGH SEPTEMBER PERIOD BREAKING THE ONE MILLION MARK FOR THE FIRST TIME IN A THIRD QUARTER OVERALL THE 10 MAJOR AUTO MAKERS BUILDING VEHICLES IN THE US PLAN TO ASSEMBLE 2503013 PASSENGER CARS AND LIGHT TRUCKS MORE THAN 40 OF THE TOTAL REPRESENTS PLANNED PRODUCTION OF LIGHT TRUCKS BUT SOME INDUSTRY ANALYSTS CAUTION THAT THE AUTO MAKERS MAY BE SETTING THEMSELVES UP FOR ANOTHER THIRD QUARTER OF DISAPPOINTMENTS OVER THE PAST COUPLE OF YEARS THE AUTO MAKERS HAVE SET HIGH THIRDQUARTER PRODUCTION PLANS ONLY LATER TO BE DEFLATED BY LETHARGIC SUMMER SALES THERE IS STILL SO MUCH NEUTRALTONEGATIVE ECONOMIC NEWS THAT IT DOES GIVE ME PAUSE TO THINK ABOUT WHAT COULD HAPPEN THIS SUMMER RELATIVE TO DEMAND SAID JOSEPH PHILLIPPI AN ANALYST WITH SHEARSON LEHMAN BROTHERS OVERALL INDUSTRY OBSERVERS SAID US AUTO MAKERS PLAN TO BUILD 1460352 PASSENGER CARS IN THE JULYTHROUGHSEPTEMBER PERIOD UP 166 FROM YEARAGO LEVELS THE BIG THREE AUTO MAKERS PLAN TO BUILD 1089000 CARS IN THE THIRD QUARTER UP 206 OVER YEARAGO LEVELS INDUSTRY SOURCES SAID SOME OF THE INCREASED OUTPUT IS PRECAUTIONARY AS GENERAL MOTORS CORP FORD MOTOR CO AND CHRYSLER CORP READY THEMSELVES FOR A POSSIBLE STRIKE BY THE UNITED AUTO WORKERS UNION LATER IN THE YEAR THE CONTRACT WITH THE BIG THREE AUTO MAKERS EXPIRES SEPT 14 STILL INVENTORY LEVELS OF UNSOLD DOMESTIC CARS AND TRUCKS LOOK RELATIVELY LEAN AT THE END OF APRIL INVENTORIES OF USBUILT LIGHT VEHICLES STOOD AT A 69DAY SUPPLY COMPARED WITH A 72DAY SUPPLY A YEAR EARLIER ACCORDING TO WARD'S AUTOMOTIVE REPORTS AN INDUSTRY TRADE JOURNAL THE INDUSTRY'S NORM IS CONSIDERED BETWEEN A 65TO70DAY SUPPLY AMONG THE BIG THREE AUTO MAKERS FORD PLANS TO BUILD 738000 CARS AND LIGHT TRUCKS IN THE JULYSEPTEMBER PERIOD UP 168 FROM THE YEARAGO QUARTER THE BULK OF THE GAIN WILL COME FROM INCREASED TRUCK PRODUCTION UP 331 FROM A YEAR AGO CHRYSLER IS CUTTING PRODUCTION OF ITS USBUILT VEHICLES FROM YEARAGO LEVELS ITS BELVIDERE ILL AND WARREN MICH ASSEMBLY PLANTS WILL BE IDLE FOR RETOOLING FOR ITS NEW NEON SMALL CAR AND NEW DODGE RAM PICKUP THE NO 3 US AUTO MAKER PLANS TO BUILD 281000 VEHICLES IN THE THIRD QUARTER A 135 DROP FROM YEARAGO LEVELS THE THIRDQUARTER PLANS DON'T INCLUDE PRODUCTION OF CHRYSLER'S NEW LH SEDANS OR ITS HOTSELLING MINIVANS WHICH ARE ALL BUILT AT ASSEMBLY PLANTS IN CANADA GM IS PLANNING A HEFTY 398 INCREASE IN VEHICLE PRODUCTION TO 1044000 CARS AND LIGHT TRUCKS FROM THE YEARAGO THIRD QUARTER ACCORDING TO ESTIMATES FROM WARD'S AUTOMOTIVE REPORT THE BIGGEST BOOST COMES FROM A 484 INCREASE IN PASSENGER CAR OUTPUT A GM SPOKESWOMAN SAID THE COMPANY WILL RELEASE ITS THIRDQUARTER PRODUCTION PLANS IN JULY AND WOULDN'T COMMENT ON WARD'S ESTIMATE MEANWHILE SEVERAL JAPANESE AUTO MAKERS ARE BOOSTING OUTPUT IN THE US WHERE THEY BENEFIT FROM LOWER PRODUCTION COSTS RELATED TO A WEAKER DOLLAR SALES OF JAPANESE VEHICLES HAVE BEEN HURT BY THE RISING VALUE OF THE YEN WHICH HAS PROMPTED THEM TO BOOST PRICES TO MAKE UP FOR DECLINING PROFITS IN THE US HONDA MOTOR CO HOWEVER IS SLASHING ITS THIRDQUARTER PLANNED OUTPUT BY 257 TO 84000 CARS COMPARED WITH THE YEARAGO QUARTER HONDA CUT PRODUCTION IN THE FIRST HALF OF THE YEAR AS SALES OF ITS ACCORD SLID THE AUTO MAKER WILL INTRODUCE A RESTYLED ACCORD LATER THIS YEAR 9306070102 930607 JOBS AREN'T THE PROBLEM BY JOHN LISCIO BILL CLINTON SHOULD THANK HIS LUCKY STARS THAT THE DEFICITREDUCTION PACKAGE ON ITS WAY TO THE SENATE HAS BEEN PARED OF VIRTUALLY ALL THE STIMULUS MEASURES HE RECOMMENDED FOR AS LAST WEEK'S EMPLOYMENT DATA REVEAL THE JOBS PICTURE IS A LOT BRIGHTER THAN ALMOST ANYONE IMAGINED NEARLY 12 MILLION JOBS BRIGHTER NOT ONLY WERE MAY NONFARM PAYROLLS UP 209000 WHICH WAS WELL ABOVE THE CONSENSUS ESTIMATE BUT APRIL'S NUMBER WAS REVISED TO SHOW A GAIN OF 216000 INSTEAD OF THE INITIALLY REPORTED 119000 AND MARCH PAYROLLS WERE MARKED UP FROM A DECLINE OF 9000 TO A GAIN OF 26000 WAIT IT GETS BETTER IN THE 12 MONTHS THAT ENDED IN FEBRUARY PAYROLL EMPLOYMENT WAS REVISED UP BY 433000 LAST BUT NOT LEAST THE BUREAU OF LABOR STATISTICS REPORTED THERE WERE ONLY 12 MILLION JOBS LOST DURING THE RECESSION 1990 AND 1991 INSTEAD OF 17 MILLION AS PREVIOUSLY REPORTED SO MUCH FOR THE JOBLESS RECOVERY WHICH IS SIMPLY A HOAX THE LEVEL OF NONFARM PAYROLLS NOW STANDS HIGHER THAN IT WAS BEFORE THE RECESSION BEGAN THROW AWAY THOSE STALE IDEAS ABOUT BELOWTREND JOB GROWTH AS WELL FOR IN THE PAST FOUR MONTHS NONFARM PAYROLLS HAVE ADVANCED BY MORE THAN 200000 ON AVERAGE WHY HAS THIS BRIGHT PICTURE BEEN SO CLOUDY UNTIL NOW LET'S START FROM THE BEGINNING IN JUNE 1992 THE BUREAU OF LABOR STATISTICS REPORTED IN ITS BENCHMARK REVISION FOR 1991 THAT JOB LOSSES WERE 640000 GREATER THAN IT HAD INITIALLY ASSUMED THE LARGEST REPORTING ERROR IN THE HISTORY OF THE BUREAU'S EMPLOYMENT REPORT UPON CLOSER EXAMINATION THE BUREAU FOUND THAT THOSE MISSING JOBS HAD BEEN PILING UP FOR SOME TIME BECAUSE OF A FLAW IN ITS SURVEY IT HAD BEEN COUNTING PAYCHECKS INSTEAD OF JOBS THE BUREAU HAS CORRECTED THIS ONETIME ERROR BY PUSHING 500000 OF THOSE JOB LOSSES INTO THE 1980S THUS MAKING THE JOB LOSSES ASSOCIATED WITH THE PAST RECESSION AMONG THE MILDEST IN POSTWAR HISTORY MORE RECENTLY THE BUREAU RAN INTO ANOTHER PROBLEM AFTER FIVE YEARS OF A NET DECLINE IN NEW BUSINESS FORMATIONS THAT CRUCIAL DETERMINANT OF JOB CREATION TURNED UP WITH A VENGEANCE LAST YEAR BUT THE BUREAU WHICH DOES NOT INCLUDE NEW BUSINESSES IN ITS SURVEY FOR SOME TWO YEARS WAS SLOW TO CATCH UP WITH THE CHANGING TIMES AFTER REVIEWING RECENT DATA ON STARTUPS ALONG WITH WITHHOLDINGTAX RECEIPTS THE GOVERNMENT CONCLUDED THAT JOB GROWTH IN THE PAST YEAR WAS HALF AGAIN AS STRONG AS PREVIOUSLY BELIEVED CONTRARY TO WHAT LABOR SECRETARY ROBERT REICH AND OTHERS HAVE INTIMATED THESE NEW JOBS AREN'T BEING FILLED BY HAMBURGER FLIPPERS AND PIZZA TWIRLERS EITHER A RECENT STUDY BY LEXINGTON MASSBASED COGNETICS INC A CONSULTING FIRM REVEALED THAT 85 OF BUSINESSES WITH 100 EMPLOYEES OR LESS ARE PAYING THEM THE AVERAGE HOURLY WAGE OR BETTER THIS WELTER OF UPWARD REVISIONS ALSO PROVES HOW GEORGE BUSH WAS ROBBED REMEMBER THE WANING DAYS OF HIS PRESIDENCY WHEN JUST ABOUT EVERY INKSTAINED WRETCH INCLUDING WILLIAM SAFIRE OF THE NEW YORK TIMES BITTERLY CRITICIZED HIM FOR DELIBERATELY COOKING THE BOOKS NOT ONE OF THEM RECANTED WHEN THE 27 INITIAL ESTIMATE FOR 1992'S THIRDQUARTER GROWTH WAS REVISED UP TO 34 THEY WERE EQUALLY SILENT WHEN ECONOMIC ACTIVITY ROARED AHEAD TO A 47 PACE IN THE FOURTH QUARTER NOR WAS THE FIRST QUARTER THE DISASTER THAT THE 09 GROWTH RATE IMPLIES THAT ANEMIC NUMBER WAS MORE OF A FUNCTION OF TRANSIENT FACTORS LIKE BAD WEATHER AND THE LARGEST QUARTERLY DECLINE IN DEFENSE SPENDING SINCE THE END OF THE KOREAN WAR THE WIDENING TRADE DEFICIT MAY HAVE ALSO ADDED TO THE PROBLEM BUT HOW A COUNTRY THAT IS IMPORTING AND EXPORTING MERCHANDISE AT RECORD LEVELS CAN BE CONSIDERED WEAK DEFIES INTERPRETATION NO IT IS BECOMING INCREASINGLY OBVIOUS THAT THE US IS RESUMING ITS HISTORIC ROLE AS THE LOCOMOTIVE THAT PULLS THE REST OF THE WORLD OUT OF THE ECONOMIC DOLDRUMS BUT LET'S BE FAIR THE CONTINUING WEAKNESS IN NONAUTO RETAIL SALES CAN'T BE ASCRIBED TO THE WEATHER THE CONSUMER REMAINS ON STRIKE BECAUSE OF HIS UNCERTAINTY ABOUT THE NATURE AND TIMING OF THE TAX HIKES THE CLINTON ADMINISTRATION HAS IN STORE FOR HIM THE FACT THAT JOBS ARE BEING CREATED AT A RATE BETTER THAN 200000 A MONTH DESPITE THE THREAT OF A 7 PAYROLL TAX TO FUND A NATIONAL HEALTHCARE PLAN IS TESTIMONY TO THE UNDERLYING STRENGTH OF THE ECONOMY BUT WHY SHOULD CONSUMERS OPEN THEIR WALLETS IF THEY FACE A TAX HIKE RETROACTIVE TO THE BEGINNING OF THE YEAR THE GERGEN WHITE HOUSE ALREADY SHOWS SIGNS OF SMARTENING UP HEALTHCARE REFORM HAS BEEN SHELVED PERHAPS UNTIL NEXT YEAR AND HILLARY CLINTON'S TASK FORCE ON THE SUBJECT HAS BEEN ALLOWED TO SINK UNDER THE WAVES TAKING WITH IT FOR THE TIME BEING THE LINGERING THREAT OF THE PUNITIVE PAYROLL TAX AN INCREASE IN THE MINIMUM WAGE IS RUMORED TO BE NEXT ON THE CHOPPING BLOCK MR CLINTON'S BRAINDEAD JOB STIMULUS PLAN WOULD HAVE CREATED JOBS THE ECONOMY DIDN'T NEED WHILE DESTROYING THE HIRING ENVIRONMENT THE MASSIVE UPWARD REVISIONS IN EMPLOYMENT ALSO CARRY SERIOUS IMPLICATIONS FOR FISCAL POLICY IT SEEMS THAT THE TAX PACKAGE WILL BE MODIFIED BUT WHY STOP THERE WHY NOT PROPOSE A PLAN THAT IS TAX NEUTRAL SURE IT WILL BE HARD TO SELL TO THE LIBERAL WING OF THE DEMOCRATIC PARTY BUT IF MR CLINTON IS REALLY WORRIED ABOUT KEEPING INTEREST RATES DOWN THE REAL TASK IS NOT REDUCING THE DEFICIT THERE IS NO LINK BETWEEN THE AMOUNT OF RED INK AND THE LEVEL OF INTEREST RATES BUT AVOIDING INFLATIONARY CHARGES LIKE AN ENERGY TAX IF THE PRESIDENT AND CONGRESS REALLY WANT JOB GROWTH TO CONTINUE EXPANDING THEN WHY NOT ABANDON THE HIGHER CORPORATE TAX AS WELL AS FOR SOCKING IT TO THE SOCALLED RICH SOMETHING NO CLASSWARFARE DEMOCRAT WILL EVER SHY AWAY FROM OK DO IT BUT WHY NOT OFFSET SOME OF THE PAIN BY SHARPLY REDUCING THE CAPITALGAINS TAX THAT COULD BE SCORED AS A REVENUE GAINER AT LEAST IN THE NEAR TERM UNFORTUNATELY BY WITHDRAWING HIS SUPPORT FOR LANI GUINIER MR CLINTON MISSED A CHANCE TO WOO THE LIBERAL WING OF HIS PARTY HE SHOULD HAVE DONE A PONTIUS PILATE AND LET THE SENATE JUDICIARY COMMITTEE CRUCIFY HIS NOMINEE NOW THE SENATE WILL HAVE TO WORK OVERTIME TO APPEASE THE BLACK CAUCUS AS FOR SPENDING CUTS WHERE TO BEGIN MR MOYNIHAN IS JEALOUSLY GUARDING SOCIAL SECURITY SO LET'S RULE THAT OUT A CAP ON MEDICARE IS A WINNER HAVING THE EFFECT OF MUTING THE RISE IN HEALTHCARE COSTS COUPLE THIS WITH AN ABANDONMENT OF THE ENERGY TAX AND MR CLINTON COULD KILL TWO INFLATIONARY BIRDS WITH ONE STONE THE BOREN GANG OF FOUR COULD ALSO BE PERSUADED AS A QUID PRO QUO TO RELAX THEIR PROTECTION OF FARM SUBSIDIES ONE THING IS CERTAIN IF THE PACKAGE IS KEPT IN CURRENT FORM OR EVEN ONLY SLIGHTLY MODIFIED FORM IT WILL MEAN HIGHER INTEREST RATES A BIGGER DEFICIT SLOWER ECONOMIC ACTIVITY AND WEAKER EMPLOYMENT BUSH IN '96 MR LISCIO IS EDITOR AND PUBLISHER OF THE LISCIO REPORT A FAXED NEWSLETTER ON THE ECONOMY 9306070101 930607 INTERNATIONAL THE AGA KHAN IS UNLIKELY TO INVEST MORE OF HIS FORTUNE TO AID ITALY'S CIGA BY PHILIP REVZIN STAFF REPORTER OF THE WALL STREET JOURNAL PARIS THE AGA KHAN SAYS HE IS UNLIKELY TO POUR MORE OF HIS PERSONAL WEALTH ESTIMATED AT MORE THAN 1 BILLION INTO CIGA SPA THE ITALIAN HOTEL GROUP OF WHICH HE IS THE PRINCIPAL SHAREHOLDER IN A RARE INTERVIEW THE SPIRITUAL LEADER OF 15 MILLION ISMAILI MUSLIMS WHO REGARD HIM AS A DESCENDANT OF THE PROPHET MOHAMMED'S COUSIN AND SONINLAW ALI SAID HIS ITALIAN INVESTMENT IS ALREADY HINDERING HIS ABILITY TO ATTEND TO THE ADVANCEMENT OF HIS FLOCK WHICH HE SAYS IS STILL HIS MAIN PRIORITY THE HOTEL CHAIN HAS SUSPENDED INTEREST PAYMENTS ON LOANS OWED TO ITALIAN BANKS OF 900 BILLION LIRE 616 MILLION AND ON 100 MILLION IN LOANS FROM A GERMANLED BANK CONSORTIUM A COURT ORDER HAS FROZEN THE ASSETS OF CIGA AND FIMPAR THE AGA KHAN'S HOLDING COMPANY PENDING NEGOTIATIONS IN THE MEDIUM TERM I'M GOING TO HAVE TO MAKE A CLEAR DECISION AS TO WHETHER THESE SORTS OF ACTIVITIES CAN BE STRUCTURED DIFFERENTLY THE AGA KHAN SAYS BECAUSE I SIMPLY DO NOT HAVE THE TIME TO DEAL WITH THEM LIKE MANY IN THE HOTEL INDUSTRY CIGA SUFFERS FROM A HANGOVER CAUSED BY HEADY EXPANSION IN THE 1980S IN ONE SEVENYEAR BINGE THE COMPANY WENT FROM OWNING 20 HOTELS IN ITALY TO OWNING 36 HOTELS THROUGHOUT EUROPEINCLUDING SUCH PRIZES AS THE PALACE HOTEL IN MADRID AND THE HOTEL IMPERIAL IN VIENNA IN THE PROCESS THE COMPANY ACCUMULATED ENORMOUS DEBTS THAT BECAME DIFFICULT TO PAY BACK WHEN THE PERSIAN GULF WAR AND THE RECESSION DROVE AWAY HOTEL GUESTS THE DEVALUATION OF THE LIRA AGGRAVATED THE PROBLEMS THE COMPANY'S BANKERS ARE NOW WORKING ON A PLAN TO RESTRUCTURE THE DEBT WHICH IS MOSTLY IN SHORTTERM LOANS AS THESE THINGS GREW ONE ALWAYS HAD A CHOICE DO YOU LET THEM GROW OR STOP THEM GROWING OR BACK AWAY SAYS THE AGA KHAN WHO ADDS THAT HE REGRETS NOT FOLLOWING THE SITUATION MORE CLOSELY FIVE YEARS FROM NOW I DON'T KNOW WHAT MY ANSWER WOULD BE WHAT I DO KNOW IS I CAN'T GIVE THIS SORT OF ACTIVITY THE TIME A FULLTIME ENTREPRENEURIAL LEADER WOULD BE GIVING IT THOUGH HE IS CIGA'S PRINCIPAL SHAREHOLDER WITH A 5001 STAKE THROUGH FIMPAR THE 56YEAROLD AGA KHAN EMPHASIZED REPEATEDLY DURING A 90MINUTE CONVERSATION IN HIS TOWN HOUSE ON PARIS'S ILE DE LA CITE THAT CIGA'S PROBLEMS WILL HAVE ABSOLUTELY NO EFFECT ON HIS DEVELOPMENT WORK FOR THE ISMAILIS HE SHRUGS OFF SUGGESTIONS THAT CIGA'S PROBLEMS WILL CUT INTO HIS PERSONAL WEALTH AND DENIES THAT ANY OF THE CIGA LOANS CARRIED HIS PERSONAL GUARANTEE ALTHOUGH HE CALLS CIGA'S PROBLEMS SEVERE HE ADDS THAT ONE MUST AVOID OVERDRAMATIZING THEM THE PLIGHT OF CIGA IS BEING OVERPUBLICIZED HE SAYS BECAUSE MY NAME IS ATTACHED TO IT HE ADDS THERE'S A TEMPTATION TO ASSOCIATE A PUBLIC COMPANY WITH THE PRINCIPAL SHAREHOLDER THAT'S NOT THE WAY THE BUSINESS WORLD WORKS I HAVE KEPT THESE THINGS VERY VERY SEPARATE HE SAYS HE'S CONVINCED A SOLUTION CAN BE WORKED OUT THAT WOULDN'T SEND CIGA INTO BANKRUPTCY THAT'S JUST NOT THE ISSUE IT'S NOWHERE NEAR THAT BAD THE ASSET VALUES ARE ENORMOUS ENORMOUS CIGA OWNS 21 HOTELS IN ITALY INCLUDING THE DANIELLI AND GRITTI PALACE IN VENICE AND THE EXCELSIOR IN ROME HE ALSO SAYS THE LOAN DEFAULTS DON'T AFFECT CIGA'S ASSETS OUTSIDE ITALY ONE OF CIGA'S PROBLEMS HOTEL INDUSTRY EXPERTS SAY WAS AN OVERDEPENDENCE ON HIGHEND TRAVELERS WILLING TO PAY 300 TO 400 A NIGHT FOR A ROOM LITTLE EFFORT WAS MADE TO CATER TO BUSINESS TRAVELERS BUT AS THE VALUE OF HIS ITALIAN ASSETS AND LATER CIGA'S DEBT BALLOONED THE AGA KHAN SAYS HE WAS DEVOTING MORE AND MORE TIME AND ENERGY TO THE CALLING HE INHERITED FROM HIS GRANDFATHER IN 1957 THE LEADERSHIP OF THE ISMAILI MUSLIMS THE GROUP A BRANCH OF SHIA ISLAM IS A MAJORITY ONLY IN REMOTE AREAS OF NORTHERN PAKISTAN ELSEWHERE ISMAILIS HAVE BEEN AN OFTEN OPPRESSED MINORITY BUT IN THE PAST FIVE YEARS THE AGA KHAN SAYS DEMOCRACY HAS SPREAD GRADUALLY AND UNEVENLY TO MANY PLACES WHERE ISMAILIS ARE CONCENTRATED SUCH AS EAST AFRICA AND ASIA FROM A CHATEAU IN CHANTILLY NORTH OF PARIS THE AGA KHAN DIRECTS A PRIVATE DEVELOPMENT NETWORK DISBURSING MORE THAN 100 MILLION A YEAR TO SERVE HIS FOLLOWERS AND THE COUNTRIES THEY LIVE IN THE NETWORK RUNS SCHOOLS CLINICS A UNIVERSITY MEDICAL CENTER IN KARACHI PAKISTAN TOURIST HOTELS IN AFRICA AND ASIA AND AN EXTENSIVE RURAL DEVELOPMENT PROGRAM MY POSITION IS THAT I HAVE OTHER PRIORITIES HE SAYS IF AND WHEN THE SITUATION IN ITALY BECOMES CLEARER I WILL BE AVAILABLE TO TRY TO ASSIST CIGA TO FIND A SET OF REALISTIC SOLUTIONS BUT HE STRESSES THIS ITALIAN CORPORATE SITUATION HAS ABSOLUTELY NO IMPACT ON THE INSTITUTIONAL WORK IN THE THIRD WORLD THE PROGRAMS WILL PROCEED THEY ARE SEPARATE ENTIRELY FROM ANY ITALIAN INVOLVEMENT AS FOR CIGA HE CONCLUDES I WILL DO EVERYTHING THAT IS REASONABLE TO ASSIST IN THE TURNAROUND BUT MY PRIORITIES ARE ELSEWHERE 9306070100 930607 IBM'S NEW CHAIRMAN BUYS 1500 SHARES OF COMMON ARMONK NY INTERNATIONAL BUSINESS MACHINES CORP'S NEW CHAIRMAN LOUIS V GERSTNER JR DIPPED HIS TOE INTO THE MARKET FOR IBM STOCK BUYING 1500 SHARES IN LATE APRIL MR GERSTNER BOUGHT 1000 SHARES APRIL 23 AT AN AVERAGE PRICE OF 4819 AND 500 SHARES APRIL 28 AT 4875 ACCORDING TO REGULATORY FILINGS MR GERSTNER'S TOTAL IBM STAKE AT THE END OF APRIL THE LATEST REPORTED PERIOD WAS 1956 SHARES INCLUDING 456 SHARES HE OWNED BEFORE HE JOINED IBM MR GERSTNER HAS ALREADY SEEN A TIDY GAIN ON HIS INVESTMENT IN IBM WHICH CLOSED FRIDAY AT 54 ANALYSTS SAY IBM'S STOCK HAS CLIMBED IN RECENT WEEKS PARTLY BECAUSE BROKERS HAVE BEEN TOUTING THE COMPANY'S STRENGTHS TO SELL A NEW ISSUE OF IBM PREFERRED STOCK BUT ANALYSTS REMAIN GLOOMY ABOUT IBM'S PROSPECTS WITH MANY PREDICTING THE COMPANY WILL BREAK EVEN OR POST ITS THIRD STRAIGHT ANNUAL LOSS IN 1993 IBM HAS SAID REPEATEDLY IT INTENDS TO REVIEW ITS 216 ANNUAL DIVIDEND AND SEVERAL ANALYSTS EXPECT IBM TO CUT IT THIS YEAR ANOTHER IBM INSIDER TO BUY THE COMPANY'S STOCK RECENTLY WAS VICE CHAIRMAN PAUL RIZZO HE BOUGHT 5000 SHARES ON JAN 28 AT 50 A SHARE 9306070099 930607 CLOSED END FUNDS UNAUDITED NET ASSET VALUES NAV OF CLOSED END FUNDS REPORTED BY THE COMPANIES AS OF FRIDAY'S CLOSE EACH QUOTE INCLUDES THE CLOSING STOCK EXCHANGE PRICE OR DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE FOR EQUITY FUNDS THE FINAL COLUMN SHOWS DIVIDENDS PAID FROM INCOME IN THE LAST 12 MONTHS AS OF THE PRIOR MONTHEND AS A PERCENTAGE OF THE STOCK MARKET PRICE THE FIGURE DOESN'T INCLUDE CAPITAL GAINS DISTRIBUTIONS NNEW YORK STOCK EXCHANGE OOVERTHECOUNTER AAMERICAN MMIDWEST 9306070098 930607 WHO'S NEWS INVESTMENT THEORIST GORDON ALTERS ROLE AT DILLON READ NEW YORK LILLI GORDON A CONSULTANT KNOWN FOR HER THEORIES ON INVESTMENTS AND CORPORATE GOVERNANCE HAS DECIDED AGAINST WORKING FULL TIME FOR WALL STREET FIRM DILLON READ & CO MS GORDON 38 YEARS OLD LAST MONTH AGREED TO JOIN DILLON READ AS A SENIOR VICE PRESIDENT FOR ASSET MANAGEMENT WITH THE GOAL OF DIRECTING DILLON READ'S INVESTMENTS IN UNDERVALUED COMPANIES BUT MS GORDON AND THE FIRM SAID THEY AGREED IT WOULD BE BETTER FOR HER TO WORK PART TIME SO THAT SHE CAN MAINTAIN HER BOSTONAREA CONSULTING PRACTICE GORDON GROUP INC A SPOKESMAN FOR DILLON READ SAID THE CHANGE WAS AMICABLE AND MS GORDON SAID IT WAS JUST A MATTER OF FIGURING OUT A BETTER ARRANGEMENT THE DILLON READ SPOKESMAN SAID THE FIRM REMAINS COMMITTED TO EVENTUALLY RAISING ABOUT 1 BILLION IN ALLIED INVESTMENT PARTNERS LP ITS FUND THAT WILL TARGET LARGE COMPANIES WITH POTENTIAL FOR BIG LONGTERM INCREASES IN MARKET VALUE THE FUND SO FAR HAS RAISED ABOUT 250 MILLION 9306070097 930607 WHO'S NEWS DBA SYSTEMS INC DBA SYSTEMS INC MELBOURNE FLA RICHARD NEIL BANEY CHAIRMAN OF RELIANCE BANK OF FLORIDA WAS NAMED TO THE BOARD OF THIS MANUFACTURER OF IMAGING PROCESSING SYSTEMS THE APPOINTMENT OF DR BANEY 56 YEARS OLD BOOSTS THE NUMBER ON THE BOARD TO SEVEN 9306070096 930607 LUXURY CARS ARE SET TO BE BUILT IN CHINA BY LARGE ARMS MAKER SPECIAL TO THE WALL STREET JOURNAL BEIJING CHINA'S LARGEST ARMS MANUFACTURER SIGNED A DEAL WITH GERMAN AND HONG KONG COMPANIES TO PRODUCE LUXURY CARS AN OFFICIAL NEWSPAPER SAID BEIJING NORTH VEHICLE WORKS A SUBSIDIARY OF CHINA NORTH INDUSTRIES CORP WILL BEGIN PRODUCTION OF 1500 UPMARKET CARS THIS YEAR WITH TECHNOLOGY PROVIDED BY GERMANY'S NEOPLAN CO AND CASH FROM HONG KONG'S YUEHAI GROUP THE CHINA DAILY SAID IT SAID TOTAL INVESTMENT WILL BE 65 MILLION BEIJING NORTH VEHICLE WORKS HAS TRADITIONALLY PRODUCED MILITARY VEHICLES BUT STARTED PRODUCING NORTH CARS IN 1986 WITH IMPORTED GERMAN TECHNOLOGY CHINA NORTH RECENTLY SIGNED AN AGREEMENT WITH SUZUKI MOTOR CORP OF JAPAN TO FORM A JOINT VENTURE TO MAKE PASSENGER CARS IN CHINA NONMILITARY GOODS ACCOUNT FOR OVER 70 OF CHINA NORTH'S OUTPUT THE CHINA DAILY SAID AND CORPORATE OFFICIALS EXPECT THAT PERCENTAGE TO RISE THE COMPANY WILL PRODUCE ONE MILLION MOTORCYCLES THIS YEAR FOR THE FIRST TIME IN JULY IT WILL ANNOUNCE 170 CIVILIAN PROJECTS FOR WHICH IT IS SEEKING OVERSEAS INVESTMENT THE PAPER REPORTED 9306070095 930607 TECHNOLOGY & HEALTH INFORMATION AGE ELECTRONIC SIGNATURES BOOST SECURITY OF PCS BY WILLIAM M BULKELEY THE INTERNAL REVENUE SERVICE BEGS TAXPAYERS TO FILE ELECTRONICALLY BUT IT WON'T SEND OUT A REFUND UNTIL IT GETS A SIGNED PAPER COPY OF THE TAX RETURN TECHNOLOGY LETS TRADERS ABROAD MOVE MILLIONS IN A MOMENT WITH A KEYSTROKE BUT HOW DOES THE HOME OFFICE KNOW THAT IT'S A BONA FIDE TRADER AT THE KEYBOARD AND NOT THE JANITOR ARRANGING A CASH TRANSFER TO HIS SWISS BANK ACCOUNT VERIFYING IDENTITY IS A PROBLEM THAT PLAGUES ALL ELECTRONIC BUSINESS BUT EMERGING TECHNOLOGIES CAN AFFIX A PERSON'S ELECTRONIC SIGNATURE TO THE ELECTRONIC MESSAGES SENT BY HIS COMPUTER WITH RECENT ADVANCES THESE SIGNATURES MAY BE BETTER THAN ONES ON PAPER A COMPUTERIZED JOHN HANCOCK ISN'T AS ELEGANT AS JOHN HANCOCK'S OF COURSE IT'S A BIZARRE ALPHANUMERIC STRING PART OF WHICH MIGHT START 568AB678 AND CONTINUE ON FOR 25 CHARACTERS THE COMPUTER THAT RECEIVES THAT CODE DOESN'T JUST READ THE NUMBERS EITHER IT PERFORMS MATHEMATICAL OPERATIONS ON THEM TO CONVINCE ITSELF THAT THE SENDER IS WHO SHE SAYS SHE IS THE AVAILABILITY OF STANDARDIZED DIGITAL SIGNATURES WILL BE MORE IMPORTANT FOR COMMERCE THAN THE INVENTION OF THE COMPUTER ASSERTS M BLAKE GREENLEE A WILTON CONN CONSULTANT ON COMPUTER SECURITY IF I HAVE AN ELECTRONIC SIGNATURE I CAN ENTER A BUSINESS RELATIONSHIP AND CONSUMMATE IT WITH NO UNDERLYING PAPER BETWEEN US HE SAYS ONE REASON THERE ISN'T MORE OF THIS TODAY IS THAT ELECTRONIC COMMERCE MAKES SOME LAWYERS AND AUDITORS NERVOUS FOR EXAMPLE TO WHAT EXTENT CAN WE HAVE THE ASSURANCE OF ENFORCEABILITY OF ELECTRONIC COMMITMENTS ASKS MICHAEL BAUM A CAMBRIDGE MASS LAWYER WHO'S CHAIRMAN OF THE AMERICAN BAR ASSOCIATION'S ELECTRONIC DATA INTERCHANGE DIVISION AS ELECTRONIC COMMERCE SPREADS CORPORATIONS AND GOVERNMENTS ALSO WANT TO AVOID THE UNVERIFIED TRANSACTIONS THAT PLAGUE THE CREDITCARD INDUSTRY THE NILSON REPORT A TRADE NEWSLETTER ESTIMATES THAT BANKS HAD LOSSES OF 864 MILLION IN CREDITCARD FRAUD LAST YEAR TO BEGIN TO ANSWER THESE CONCERNS THE COMMERCE DEPARTMENT IS EXPECTED TO ISSUE A STANDARD METHOD THIS SUMMER FOR CREATING ELECTRONIC SIGNATURES THE DIGITAL SIGNATURE ALGORITHM ONCE ACCEPTED BY US AGENCIES IT'S LIKELY TO BE ADOPTED BY MANY BUSINESSES CONSULTANTS SAY THE DIGITAL SIGNATURE ALSO IS BECOMING IMPORTANT IN PC NETWORKS WORDPERFECT CORP'S NEW INFORMS SOFTWARE FOR ELECTRONIC FORMS WILL FEATURE DIGITALSIGNATURE CAPABILITY FOR THINGS SUCH AS EXPENSE FORMS MEANWHILE ORGANIZATIONS ARE TRYING A VARIETY OF WAYS TO VERIFY ELECTRONIC DOCUMENTS ONE PROVISION OF THE NEW TAX BILL WOULD LET THE IRS ACCEPT ELECTRONIC VERIFICATION AS A SUBSTITUTE FOR SIGNATURES THIS YEAR IT EXPERIMENTED WITH MAKING DIGITAL RECORDINGS OF THE NAME AND SOCIAL SECURITY NUMBERS FOR SOME ELECTRONIC FILERS AND ALSO TRIED STORING SIGNATURES AS RECORDED BY DIGITAL SIGNATURE PADS CURRENTLY MOST COMPANIES TRY TO ENSURE THE IDENTITY OF USERS BY GIVING PEOPLE PASSWORDS BUT PASSWORDS CAN BE GUESSED FORGOTTEN OR STOLEN GOLDMAN SACHS & CO DECIDED PASSWORDS WEREN'T ENOUGH WHEN IT STARTED TO PERMIT ITS TRADERS IN TOKYO AND LONDON TO CONDUCT LARGER TRADES IT GAVE THEM ALL SECURID CARDS MADE BY SECURITY DYNAMICS INC CAMBRIDGE MASS TO THWART FRAUDS THAT MIGHT BE COMMITTED BY AN UNAUTHORIZED PERSON USING A TRADER'S TERMINAL THE CARDS LOOK LIKE CREDIT CARDS WITH LITTLE DISPLAY SCREENS EACH ONE CONTAINS A BATTERYPOWERED MICROPROCESSOR THAT DISPLAYS A NEW SEVENDIGIT PASSCODE EVERY 60 SECONDS THE CARDS ARE SYNCHRONIZED WITH A CENTRAL COMPUTER THAT'S SIMULTANEOUSLY CREATING THE SAME PASSCODE WHEN A TRADER KEYS IN THE PASSCODE THE COMPUTER AUTHORIZES HER TO MAKE THE TRADE JOANN PERRY A VICE PRESIDENT AT GOLDMAN SACHS SAYS USERS LIKED THE SECURID CARD BECAUSE THE BUSINESS CONTROL DIDN'T GET IN THE WAY OF THE BUSINESS PROCESS SECURID SAYS BUSINESS IS BOOMING LAST YEAR IT SOLD 100000 CARDS AND IT EXPECTS TO SELL 200000 THIS YEAR AT AN AVERAGE COST PER USER OF 75 SAYS CHARLES STUCKEY ITS PRESIDENT ONE BENEFIT IS THAT THE SYSTEM DOESN'T REQUIRE A SPECIAL READER UNLIKE SIGNATURE CARDS WITH MICROPROCESSORS THAT SLIDE INTO SLOTS ON COMPUTERS SAYS MR STUCKEY WE'RE STARTING TO SEE COMPANIES REQUIRE VENDORS AND SUPPLIERS TO HAVE CARDS SO THEY CAN GET INTO THEIR SYSTEMS MANY OTHER COMPANIES SELL SIGNATURE SYSTEMS BASED ON A CREDITCARDSIZED SMART CARD THAT CONTAINS A MICROPROCESSOR THAT'S READ BY A READER ATTACHED TO THE COMPUTER IT CAN ONLY BE USED IF THE PERSON KNOWS A PERSONAL PASSWORD SANDRA LAMBERT VICE PRESIDENT OF INFORMATION SECURITY AT CITICORP'S CITIBANK UNIT SAYS ITS EMPLOYEES HAVE SMART CARDS THAT CAN PLACE MESSAGEAUTHENTICATION CODES OR MACS AT THE END OF WIRE TRANSFERS OF MONEY THE CARD IS A KIND OF ELECTRONIC KEY THAT USES A PRIVATE ALGORITHM OR FORMULA TO CREATE THE MAC THE MAC WHICH MIGHT BE SOMETHING LIKE 4AF3 OB62 IS DIFFERENT FOR EACH MESSAGE CUSTOMIZED BY THE COMBINATION OF THE FORMULA AND VARIABLES SUCH AS HOW MANY CHARACTERS THE MESSAGE CONTAINS WHEN THE MESSAGE ARRIVES THE RECEIVER USES THE SAME ELECTRONIC KEY USED BY THE SENDER TO COMPUTE A MAC FOR THE MESSAGE IF THE CODE IS DIFFERENT SHE KNOWS THE MESSAGE HAS BEEN ALTERED THE DIFFICULTY WITH THE SYSTEM IS MAKING SURE THAT RECEIVERS HAVE BEEN GIVEN THE SAME KEY THE COMING TECHNOLOGY IN DIGITAL SIGNATURES IS THE PUBLICPRIVATE KEY SYSTEM BASED EITHER ON THE DIGITAL SIGNATURE ALGORITHM OR ENCRYPTION SYSTEMS DESIGNED BY SUCH COMPANIES AS RSA DATA SECURITY INC REDWOOD CITY CALIF AND PUBLIC KEY PARTNERS SUNNYVALE CALIF IN A PUBLICPRIVATE KEY SYSTEM IF SALLY SENDS A MESSAGE SHE CAN SIGN THE DOCUMENT USING A KEY THAT'S ONLY ON HER DISK OR ON A SMART CARD A RECEIVER CAN VERIFY THE SIGNATURE BY GETTING SALLY'S PUBLIC KEY FROM A SOURCE SUCH AS AN ELECTRONIC BULLETIN BOARD OR PERHAPS THE POST OFFICE IF THE GOVERNMENT ELECTS TO HAVE A ROLE ONLY THE PUBLIC KEY CAN VERIFY IF IT WAS SALLY'S PRIVATE KEY THAT CREATED THE STRING OF LETTERS AND NUMBERS IN THE SIGNATURE EVEN IN THE ELECTRONIC AGE HOWEVER SOME PEOPLE THINK THERE'S STILL A PLACE FOR THE HUMAN SIGNATURE SDB SYSTEMS INC FORT MEYERS FLA HAS STARTED SELLING TELESIGNATURE 2000 A DEVICE THAT WORKS WITH PEN COMPUTERS THE DEVICE USES TELEPHONE LINES TO TRANSMIT AN IMAGE OF A CHECK OR A CONTRACT TO THE PEN COMPUTER WHEN THE IMAGE APPEARS ON THE PEN COMPUTER'S SCREEN THE OWNER SIGNS AND TRANSMITS IT BACK TO TELESIGNATURE WHICH DUTIFULLY PRINTS OUT THE SIGNATURE 9306070094 930607 BOND INVESTORS BRACE FOR HIGHER INTEREST RATES CREDIT MARKETS DATA ON JOBS HOUSING IGNITE INFLATION FEARS BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MORE INVESTORS AND ECONOMISTS ARE BEGINNING TO BELIEVE THAT INTEREST RATES ARE HEADED HIGHER ALTHOUGH MANY THINK LONGTERM BOND YIELDS WON'T MOVE AS FAST AS SHORTTERM RATES THE MAY EMPLOYMENT REPORT STARTLED THE BOND MARKET FRIDAY WITH ITS GREATERTHANEXPECTED STRENGTH BOOSTING THE YIELD ON THE 30YEAR TREASURY BOND TO 691 FROM THURSDAY'S 686 THE BOND'S PRICE WHICH FALLS AS ITS YIELD RISES SANK MORE THAN 5/8 POINT TO 102 20/32 SLICING MORE THAN 625 FROM THE PRICE OF A 1000 BOND FOR MONTHS WE'VE ALL ENJOYED THE RIDE DOWN IN INTEREST RATES BUT NOW EVERYONE IS KEEPING AN EYE ON THE EXIT SAYS PETER HEGEL HEAD OF FIXEDINCOME INVESTMENTS AT VAN KAMPEN MERRITT A CHICAGO MUTUAL FUND CONCERN WE COULD GO TO A 75 YIELD ON THE 30YEAR TREASURY BOND BY THE END OF THE YEAR WE'VE PROBABLY HIT THE BOTTOM IN BOTH LONG AND SHORTTERM RATES SAYS LEIF H OLSEN WHO RUNS HIS OWN FINANCIAL FIRM IN NEW CANAAN CONN THE QUESTION NOW IS NOT WHETHER THERE WILL BE GREATER INFLATION BUT HOW MUCH GREATER AND WHEN HE SAYS BOND INVESTORS FEAR INFLATION AS IT ERODES THE VALUE OF FIXEDINCOME INVESTMENTS FRIDAY'S JOBS DATA INCLUDED SIZABLE REVISIONS OF PAST REPORTS AND ACCORDING TO MR OLSEN EMPLOYMENT WAS GROWING AT A HIGHER RATE LAST YEAR THAN PEOPLE HAD THOUGHT A SEPARATE GOVERNMENT REPORT EARLIER IN THE WEEK SHOWED A STUNNING 227 RISE IN NEWHOME SALES FOR APRIL THE BIGGEST JUMP IN MORE THAN SIX YEARS THAT REPORT INITIALLY SHRUGGED OFF BY BOND INVESTORS TOOK ON NEW MEANING IN LIGHT OF THE EMPLOYMENT REPORT MONEY MANAGERS SAY THE NEXT TWO WEEKS COULD SET THE DIRECTION OF INTEREST RATES FOR MONTHS THAT'S BECAUSE GOVERNMENT INFLATION REPORTS SLATED TO BE ISSUED THIS WEEK AND NEXT ARE DRAWING INCREASINGLY CLOSE SCRUTINY FROM INVESTORS THE FIRST FOUR MONTHS OF THE YEAR BROUGHT LARGERTHANEXPECTED PRICE INCREASES TO KEEP INFLATION IN CHECK AS REPORTED POLICY MAKERS AT THE FEDERAL RESERVE VOTED RECENTLY IN FAVOR OF A BIAS TOWARD RAISING SHORTTERM RATES MY GUESS IS THAT SOME MEMBERS OF THE FED'S POLICYMAKING COMMITTEE ARE LOOKING FOR A REASON TO INCREASE RATES SOONER RATHER THAN LATER SAYS MR OLSEN HE BELIEVES THE REPORTS WILL SHOW A 3 ANNUALIZED INFLATION RATE BUT IF THE FIGURE HITS 4 THERE WILL BE A SIGNIFICANT SELLOFF IN THE BOND MARKET ESPECIALLY IN SHORTERTERM TREASURY SECURITIES MOST DIRECTLY HIT BY A FED RATE INCREASE IF THE FED DOES ACT MR OLSEN LOOKS FOR A BOOST OF A QUARTER PERCENTAGE POINT IN THE FEDERAL FUNDS RATE WHICH IS CHARGED FOR OVERNIGHT LOANS BETWEEN BANKS TO MEET RESERVE REQUIREMENTS THE LAST TIME THE FED RAISED INTEREST RATES WAS MORE THAN FOUR YEARS AGO LONGTERM BOND YIELDS COULD BREAK ABOVE 7 IN THE NEXT FEW WEEKS SAYS MR OLSEN BUT THEY ARE UNLIKELY TO MOVE SHARPLY HIGHER ALL AT ONCE THERE IS STILL A CHANCE FOR INTERMITTENT RALLIES MONEY MANAGERS ARE TRYING TO TAKE ADVANTAGE OF THE NARROWING GAP BETWEEN SHORT AND LONGTERM YIELDS IF THEY THINK LONGTERM YIELDS WILL BARELY BUDGE WHILE SHORTTERM RATES SURGE FOR EXAMPLE THEY MIGHT BUY 30YEAR BONDS WHILE SHORTSELLING NOTES THAT MATURE SOONER IN A SHORT SALE AN INVESTOR SELLS BORROWED SECURITIES IN THE HOPE OF BUYING THEM BACK AT A LOWER PRICE AND POCKETING THE DIFFERENCE ON FRIDAY YIELDS FOR SHORTTERM TREASURY SECURITIES ROSE EVEN MORE SHARPLY THAN THOSE FOR LONGTERM DEBT THE YIELD ON THE TWOYEAR NOTE ROSE TO 431 FROM 413 THURSDAY AS ITS PRICE PLUNGED NEARLY 3/8 POINT TO 99 20/32 THE RESULT WAS AN INTERESTRATE GAP OF JUST 260 PERCENTAGE POINTS BETWEEN 30YEAR TREASURY BONDS AND TWOYEAR NOTES COMPARED WITH 305 PERCENTAGE POINTS ABOUT A MONTH AGO AND 344 PERCENTAGE POINTS LAST JULY NOT EVERYONE IS BEARISH THOSE OF US WHO THOUGHT THAT WE COULD STILL SEE NEW PRICE HIGHS ARE RELUCTANT TO GIVE UP NOW SAID DAVID ADER A MARKET ANALYST AT TECHNICAL DATA A UNIT OF THOMSON FINANCIAL SERVICES THERE IS NO QUESTION THAT THE INVESTOR COMMUNITY IS GOING TO BE VERY MUCH ON THE EDGE IN THE NEXT WEEK HE SAYS BUT IN THE NERVOUSNESS THERE MIGHT BE A CASE FOR 30YEAR BOND BULLS THERE IS A SCHOOL OF THOUGHT THAT IT MAY BE TAKEN AS A SIGN OF CREDIBILITY IF THE FED TIGHTENS IN ORDER TO FIGHT INFLATION IN THE DAYS FOLLOWING RECENT NEWS THAT THE FED MOVED TO FAVOR A BIAS TOWARD HIGHER SHORTTERM RATES 30YEAR TREASURY BONDS MADE BIG PRICE GAINS AS THEIR YIELDS PLUNGED WHILE MOST OTHER MATURITIES MOVED TO HIGHER YIELDS EVEN MORE OPTIMISTIC IS DONALD STRASZHEIM CHIEF ECONOMIST AT MERRILL LYNCH & CO WHO BELIEVES INFLATION ISN'T YET A THREAT HE BELIEVES MANY COMPANIES WON'T RAISE PRICES FOR FEAR OF LOSING BUSINESS IN A WEAK ECONOMY HE DOUBTS WAGE INFLATION WILL POSE A PROBLEM AS MANY BUSINESSES BELIEVE THEY CAN STAY FULLY STAFFED WITHOUT BIG PAY INCREASES INFLATION AROUND THE WORLD IS STILL FALLING MR STRASZHEIM SAYS SO WHY SHOULD IT RISE IN THE US WITH INFLATION LOW THE ECONOMY SLUGGISH AND THE GOVERNMENT MOVING GRADUALLY TO CUT SPENDING MR STRASZHEIM BELIEVES THE 30YEAR TREASURY BOND WILL WIND UP THIS YEAR WITH AN AVERAGE YIELD OF ABOUT 68 AND THEN MOVE TO 64 NEXT YEAR A JOBS REPORT SUGGESTING THAT THE LABOR FORCE HAS PROGRESSED BEYOND THE EMBRYONIC STAGES OF RECOVERY KNOCKED TREASURY PRICES LOWER PRICES OF CORPORATE MUNICIPAL AND MORTGAGEBACKED SECURITIES ALSO FELL MEANWHILE INTERNATIONAL BUSINESS MACHINES CORP ANNOUNCED PLANS TO SELL 15 BILLION OF BONDS SOMETIME THIS WEEK IN A TWOPART OFFERING THROUGH DEALERS LED BY MORGAN STANLEY & CO THE OFFERING WILL CONSIST OF 1 BILLION OF SEVENYEAR BONDS AND 500 MILLION OF 20YEAR BONDS AN UNDERWRITING OFFICIAL AT MORGAN STANLEY SAID IBM'S DEBT OUTSTANDING IS RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP SEE RELATED STORY ABREAST OF THE MARKET STOCKS MAY RISE FURTHER DESPITE ALTERED CLIMATE WSJ JUNE 7 1993 9306070093 930607 TECHNOLOGY SMITHKLINE AND KOREA RESEARCH SEOUL SOUTH KOREA KOREA RESEARCH INSTITUTE OF CHEMICAL TECHNOLOGY AND SMITHKLINE BEECHAM PLC SAID THEY AGREED TO COLLABORATE IN THE DISCOVERY AND DEVELOPMENT OF QUINOLINE ANTIBIOTICS UNDER THE AGREEMENT SMITHKLINE BEECHAM WILL RECEIVE WORLDWIDE PATENT RIGHTS FOR QUINOLIONE ANTIBIOTICS DISCOVERED BY KOREA RESEARCH WHICH WILL RECEIVE MILESTONE PAYMENTS AND ROYALTIES BASED ON SALES ADDITIONAL DEVELOPMENT WORK INCLUDING CLINICAL TRIALS WILL BE CONDUCTED BY SMITHKLINE BEECHAM SMITHKLINE BEECHAM SAID A RESEARCH TEAM LED BY WAN JOO KIM OF KOREA RESEARCH HAS SUCCEEDED IN SYNTHESIZING NOVEL QUINOLINE COMPOUNDS WITH BROAD ANTIBACTERIAL EFFECTS A LONG DURATION OF ACTION AND THE PROSPECT OF LOWER ADVERSE EFFECTS THAN QUINOLINE ANTIBACTERIALS NOW ON THE MARKET SMITHKLINE SAID KOREA RESEARCH HAD FILED PATENT APPLICATIONS FOR THESE COMPOUNDS IN SOUTH KOREA AND 34 OTHER COUNTRIES INCLUDING THE US JAPAN AND MAJOR EUROPEAN COUNTRIES 9306070092 930607 LEISURE & ARTS ON SPORTS BRUGUERA UPSETS COURIER IN FIVE SETS BY FREDERICK C KLEIN PARIS THE HORSERACE FELLOW WHO FIRST MOUTHED THE LINE HORSES FOR COURSES MUST HAVE HAD SERGI BRUGUERA IN MIND THIS LANKY 22YEAROLD CABALLO FROM BARCELONA WHO PLAYS WINNING TENNIS ON CLAY BUT NOWHERE ELSE BECAME THE WORLD'S CHAMPION OF THE GRITTY STUFF ON SUNDAY UPSETTING THE AMERICAN JIM COURIER IN THE FRENCH OPEN FINAL AT ROLAND GARROS STADIUM 64 26 62 36 AND 63 THE MATCH SPANNED FOUR HOURS AND ALL THE TENNIS WASN'T STERLING COURIER HAD BEEN ERRORPRONE AT VARIOUS TIMES DURING THE TOURNAMENT I NEVER PLAYED MY A' GAME HE ADMITTED AND NEVER MORE THAN IN A LAST SET SUNDAY IN WHICH HE FRITTERED AWAY A 20 LEAD IN GAMES HE'D WON HERE THE LAST TWO YEARS AND HAD BEATEN BRUGUERA THE PREVIOUS FOUR TIMES THEY'D MET BUT IT ISN'T THE BEST PLAYER WHO WINS THESE THINGS IT'S THE PLAYER WHO PLAYS BEST AND THAT ON SUNDAY WAS THE 10THSEEDED BRUGUERA WHO'S BEST PREVIOUS SHOWING IN A GRAND SLAM EVENT WAS GETTING TO A ROUND OF 16 THE WOMEN'S SIDE OF THE TOURNEY RAN TRUER TO FORM AS IS ITS WONT TOPSEEDED STEFFI GRAF OF GERMANY WHO'S THE WORLD'S BEST WOMEN'S TENNISER ON ANY SURFACE WHEN MONICA SELES ISN'T ON HAND DEFEATED MARY JOE FERNANDEZ OF MIAMI ON SATURDAY 46 62 AND 64 FOR HER THIRD FRENCH TITLE THE 23YEAROLD FROM BRUEHL NOW HAS MADE THE FINALS OF 19 OF THE 24 TENNIS MAJORS IN WHICH SHE'S COMPETED SINCE 1987 WINNING 12 OF THEM WITH SELES STILL RECUPERATING IN COLORADO FROM A STAB WOUND STEFFI WILL BE THE FAVORITE TO PAD THOSE STATS FURTHER AT WIMBLEDON STARTING LATER THIS MONTH BRUGUERA CAME HERE WITH AN 80 WINNING MARK ON DIRT BUT WITH A REP NOT ONLY AS A PLAYER WHO COULDN'T WIN ELSEWHERE HE'S LOST MORE MATCHES THAN HE'S WON ON OTHER SURFACES BUT ONE WHO COULDN'T WIN A BIG ONE ON THE STUFF HE'D LOVED SINCE HE WAS A KID MAKING MUDPIES HE'D BEEN LUMPED IN THE PUBLIC MIND WITH SUCH OTHER SPANISH CLAYCOURT SPECIALISTS AS EMILIO AND JAVIER SANCHEZ CARLOS COSTAS AND JORDI ARRESE AND EVEN IN HIS HOMELAND WASN'T ALWAYS PLACED ATOP THE LUMP DURING THE PAST FORTNIGHT THOUGH HE SKIMMED THROUGH HIS DRAW ACCOMPLISHING A RARE TRIPLE BAGEL A SCORE OF 60 60 60 AGAINST THE MISNAMED THIERRY CHAMPION OF FRANCE IN ONE MATCH AND ROUTING THE NO 1 SEED PETE SAMPRAS IN ANOTHER YES BRUGUERA PLAYED MOSTLY BEHIND THE BASELINE BUT HIS STROKES PACKED MUSTARD APLENTY ANDREI MEDVEDEV THE 18YEAROLD UKRAINIAN PRODIGY TESTIFIED AS MUCH AFTER BRUGUERA HAD DISPOSED OF HIM IN A STRAIGHTSET SEMIFINAL ON FRIDAY HIS SPEED RUINED MY RHYTHM SAID MEDVEDEV HOW'S THAT ASKED A JOURNALIST IT WAS LIKE IF I STARTING TALKING VERY FAST YOU'D MAKE A LOT OF MISTAKES TAKING NOTES MEDVEDEV REPLIED COURIER GOT TO THE FINAL HALTINGLY LOSING A SET IN FOUR OF HIS PREFINAL MATCHES BUT HIS SUNDAY PUNCH HIS QUICKTRIGGER RIGHT OOPS FORE HAND GOT HIM THROUGH TO SUNDAY ONCE THERE THOUGH HE DISCOVERED QUICKLY THAT BRUGUERA'S FOREHAND WAS EVERY BIT AS GOOD AS HIS AND WORKED HIS FOE'S BACKHAND INSTEAD THAT SIDE TURNED OUT TO BE STEADY AS DID BRUGUERA'S CHARACTER WHEN IT COUNTED THIS SHOWED AFTER HE'D SURRENDERED HIS TWOSETSTOONE EDGE IN SET FOUR WHEN COURIER PLAYED HIS BEST TENNIS OF THE DAY EXPERIENCE IS SUPPOSED TO TELL IN FIFTH SETS OF GRAND SLAM FINALS AND COURIER HAD THE MOST OF THAT THIS WAS HIS SIXTH AT AGE 22 BUT IT WAS HE WHO WILTED FROM THE 02 DEFICIT THE SPANIARD WON FIVE STRAIGHT GAMES AND AFTER LOSING THE NEXT FOUGHT OFF TWO BREAK POINTS TO WIN THE SET'S NINTH GAME AND THE MATCH I WAS TIRED BUT SO WAS HE AND I WAS PREPARED TO FIGHT ALL THE WAY THE WINNER SAID LATER THE WIN HE ADDED PUT HIM IN HEAVEN FOR A MOMENT IT HAS BEEN MY DREAM SINCE I WAS FIVE YEARS OLD WHILE THE WINNER MADE MOST OF THE NEWS ON THE MEN'S SIDE MUCH OF THE WOMEN'S ATTENTION CENTERED ON FERNANDEZ DESPITE HER LOSS IN THE FINAL THAT WAS PARTLY BECAUSE OF THE TRANSFORMATION IN STYLE FROM PASSIVE TO ACTIVE THAT HELPED HER DEFEAT SUCH PREVIOUS BETTERS AS GABRIELA SABATINI AND ARANTXA SANCHEZ VICARIO AND EXTEND GRAF FULLY BEFORE BOWING IT ALSO WAS BECAUSE OF THE HAIRBREADTH MARY WAY SHE ACHIEVED A COUPLE OF HER WINS FERNANDEZ WON HER FIRST THREE MATCHES EASILY ENOUGH BUT IN ROUND FOUR AGAINST THE STRAPPING DUTCHWOMAN BRENDA SCHULTZ SHE WAS DOWN 26 35 AND 030 BEFORE RALLYING AND IN A WEDNESDAY QUARTERFINAL TRAILED SABATINI 16 AND 15 BEFORE A TURNAROUND THAT ONLY COULD BE CALLED AMAZING THAT COMEBACK BEGAN WITH A MODEST GOAL MARY JOE SAID SHE GLANCED AT THE MATCH CLOCK AFTER GAME SIX OF THE SECOND SET SAW THAT ONLY 53 MINUTES HAD EXPIRED AND VOWED TO TRY TO SURVIVE FOR AT LEAST AN HOUR AS IT TURNED OUT THE CONTEST LASTED THREE HOURS AND 35 MINUTES THE LONGEST WOMEN'S GRAND SLAMEVENT DUEL IN MEMORY FERNANDEZ FOUGHT OFF FIVE MATCH POINTS BEFORE WINNING THE SECOND SET 76 AND NEEDED FOUR OF HER OWN TO PREVAIL IN THE THIRD 108 THE FRENCH OPEN PERMITS NO LASTSET TIEBREAKERS AGAINST GRAF FROM WHOM SHE'D TAKEN JUST ONE SET IN 10 PREVIOUS MEETINGS FERNANDEZ GOT AHEAD 64 AND THE TWO PLAYED THE FIRST FIVE GAMES OF THE NEXT SET ON SERVE BUT THEN GRAF WON A 22POINT GAME BOTH PLAYERS LATER DESCRIBED AS PIVOTAL TOOK THE SECOND SET AND WON THE LAST 64 DESPITE LOSING THE FIRST TWO GAMES AND BEING DOWN A SERVICE BREAK AT 34 GRAF DOESN'T FOOL ANYBODY WITH HER REPERTOIRE OF SHOTS OF WHICH THERE REALLY ARE ONLY TWO A SLICED BACKHAND AND HARD FLAT FOREHAND SHE WINS BECAUSE SHE HITS THEM AGAIN AND AGAIN WHATEVER THE WOMAN ACROSS THE NET IS DOING THE 21YEAROLD FERNANDEZ WHO STILL LACKS A GRAND SLAM TITLE BUT WHOSE PERFORMANCE AMOUNTED TO A HALFSTEP UPWARD TO HER GAME'S SMALL SECOND RANK WITH SABATINI AND SANCHEZ VICARIO SAID PREVIOUSLY THAT TO BEAT GRAF OR SELES A PLAYER HAS TO COMMIT HERSELF TOTALLY TO THE BATTLE NEVER ASSUMING THAT A POINT HAS BEEN WON OR A LEAD IS SAFE GRAF AFFIRMED AS MUCH AFTER HER TRIUMPH EVEN THOUGH I WAS DOWN 43 IN SET THREE I STILL FELT GOOD BECAUSE I DIDN'T THINK ABOUT LOSING SHE SAID I JUST DIDN'T THINK ABOUT IT I JUST PLAYED EVERY POINT THAT'S WHY I THINK IT TURNED AROUND BECAUSE I WASN'T AFRAID OF ANYTHING 9306070091 930607 BUSINESS BRIEF MALAYSIAN AIRLINE SYSTEMS BHD PRETAX PROFIT FOR FISCAL YEAR FELL SHORT OF EXPECTATIONS MALAYSIAN AIRLINE SYSTEMS BHD THE NATION'S FLAGSHIP AIR CARRIER REPORTED GROUP PRETAX PROFIT OF 157 MILLION RINGGIT 614 MILLION FOR THE FISCAL YEAR ENDED MARCH 31 A 32 INCREASE FROM THE YEAREARLIER PERIOD HOWEVER THE FIGURE IS WELL BELOW THE COMPANY'S MOST RECENT OFFICIAL FORECAST OF 372 MILLION RINGGIT REVENUE FOR THE RECENTLY ENDED YEAR WAS 374 BILLION RINGGIT 146 BILLION UP 48 FROM THE YEAREARLIER 357 BILLION RINGGIT AND NET EARNINGS ROSE 29 TO 146 MILLION RINGGIT THE COMPANY BLAMED THE SHORTFALL ON CUTTHROAT COMPETITION IN INTERNATIONAL ROUTES UNEXPECTEDLY SLOW GROWTH IN DOMESTIC AIR TRAFFIC A CONTINUING ECONOMIC SLUMP IN MANY WORLD ECONOMIES AND THE MALAYSIAN RINGGIT'S APPRECIATION ANALYSTS NOTED THAT THE NUMBERS WERE PARTICULARLY POOR IN LIGHT OF THE COMPANY'S 337 MILLION RINGGIT SALE OF SEVEN AIRCRAFT 9306070090 930607 BUSINESS BRIEF COMPUTERVISION CORP US COURT ORDERS NEW TRIAL FOR 1989 ANTITRUST LAWSUIT COMPUTERVISION CORP SAID A FEDERAL APPEALS COURT ORDERED A NEW TRIAL FOR A 1989 ANTITRUST LAWSUIT AGAINST IT BY VIRTUAL MAINTENANCE INC VIRTUAL MAINTENANCE OF ROCHESTER HILLS MICH FILED THE SUIT CHARGING THAT COMPUTERVISION'S LINKING OF SOFTWARE UPDATES NEEDED BY CUSTOMERS TO THE PURCHASE OF COMPUTER MAINTENANCE FROM COMPUTERVISION VIOLATED FEDERAL ANTITRUST LAWS BY UNFAIRLY EXCLUDING INDEPENDENT FIRMS IN 1990 A LOWER COURT RULED IN FAVOR OF VIRTUAL MAINTENANCE A COMPUTER MAINTENANCE FIRM BUT THE US COURT OF APPEALS FOR THE SIXTH CIRCUIT IN CINCINNATI REVERSED THE RULING IN MARCH 1992 FRIDAY THE APPEALS COURT SAID IT RECONSIDERED ITS JUDGMENT IN LIGHT OF A JUNE 1992 US SUPREME COURT DECISION FINDING THAT COMPETITION IN A PRIMARY EQUIPMENT MARKET DOESN'T PREVENT A MONOPOLY IN RELATED MARKETS COMPUTERVISION FORMERLY PRIME COMPUTER INC IS BASED IN BEDFORD MASS THE SOFTWARE AND COMPUTER SERVICES CONCERN IS 22 OWNED BY AMERICAN EXPRESS CO'S LEHMAN BROTHERS INC A FEDERAL APPEALS COURT ORDERED A NEW TRIAL ON ONE OF THREE ANTITRUST CLAIMS IN A 1989 LAWSUIT AGAINST COMPUTERVISION CORP BY VIRTUAL MAINTENANCE INC BUT REAFFIRMED ITS ORIGINAL RULING IN FAVOR OF COMPUTERVISION ON TWO OF THE CLAIMS AN ARTICLE YESTERDAY STATED THAT THE COURT HAD ORDERED A NEW TRIAL BUT DIDN'T INDICATE THAT ONLY ONE OF THE THREE CLAIMS WILL BE RECONSIDERED 9306070089 930607 MARKETING & MEDIA TELECOMMUNICATIONS SEEKS STAKE IN SUMITOMO UNIT SAN FRANCISCO TELECOMMUNICATIONS INC THE LARGEST CABLE OPERATOR IN THE US SAID IT AGREED TO BUY A STAKE IN A MAJOR JAPANESE CABLE CONCERN AND HELP RUN THE CABLE NETWORK IT OWNS TELECOMMUNICATIONS BASED IN ENGLEWOOD COLO SAID IT WOULD BUY AN 18 INTEREST IN SUMITOMO CORP'S CABLE SOFT NETWORK A FICTIONBASED MOVIE SERVICE THAT REACHES 400000 BASIC CABLE SUBSCRIBERS IN JAPAN THE AGREEMENT ANNOUNCED HERE ON THE FIRST DAY OF THE INDUSTRY'S BIG TRADE SHOW OPENS THE DOOR FOR COLLABORATION IN CHARTING CABLE SOFT NETWORK'S FUTURE MANAGEMENT PROGRAM PURCHASES SCHEDULING AND MARKETING FINANCIAL TERMS OF THE AGREEMENT WERE NOT DISCLOSED THOUGH TELECOMMUNICATIONS' HOLDINGS SPAN SEVERAL COUNTRIES THIS AGREEMENT IS THE FIRST JAPANESE PROGRAMMING STAKE THE COMPANY HAS PURCHASED AND IT SIGNALS AN INTEREST BY THE CABLE GIANT IN CABLE MARKETS IN THE FAR EAST CABLE SOFT NETWORK CURRENTLY IS CARRIED ON 160 CABLE SYSTEMS IN JAPAN SUMITOMO CORP A GLOBAL TRADING COMPANY IS A CABLE OPERATOR AND PROGRAMMER IN JAPAN 9306070088 930607 LETTERS TO THE EDITOR HOW TO SAVE BILLIONS IN DRUG COSTS IN REGARD TO YOUR APRIL 27 ARTICLE VOLUNTARY PACTS ON HEALTH COSTS ARE CONSIDERED WHITE HOUSE DOESN'T WANT TO SET FEES BUT SEEKS POWERS FOR COMPLIANCE A LITTLEKNOWN BILL SIGNED INTO LAW LAST FALL MAY PROVIDE A MORE EFFECTIVE ALTERNATIVE TO UNPALATABLE MANDATORY OR QUASIMANDATORY PHARMACEUTICAL PRICE CONTROLS SIGNED BY PRESIDENT BUSH ON OCT 29 THE PRESCRIPTION DRUG USER FEE ACT CREATES A FRAMEWORK FOR COMBINED FDA/INDUSTRY SUPPORT OF NATIONAL HEALTHCARE COST REDUCTION AND SYSTEM REFORM EFFORTS EVEN WHILE IT SPEEDS APPLICATION REVIEWS VERY BRIEFLY THE ACT WORKS LIKE THIS PHARMACEUTICAL COMPANIES ARE ASSESSED USER FEES FOR FDA REVIEWS OF THEIR PRODUCTMARKETING APPLICATIONS AND ARE ASSURED A MORE TIMELY AND EFFICIENT REVIEW IN RETURN DRAMATICALLY REDUCING THE OVERALL COST OF DRUG DEVELOPMENT THE FDA PROMISES TO USE THE ADDED RESOURCES EXCLUSIVELY FOR BEEFING UP THE CAPACITY OF ITS REVIEW SYSTEMS THE INDUSTRY'S CONTRIBUTIONS TO THE IMPROVED SYSTEMS ARE CONSIDERABLE 327 MILLION OVER FIVE YEARS THE FDA'S CHRONICALLY UNDERSTAFFED AND OVERWORKED NEWPRODUCT REVIEW SYSTEM CURRENTLY TAKES 299 MONTHS ON AVERAGE TO PROCESS NEW PHARMACEUTICAL MARKETINGAPPROVAL APPLICATIONS NEARLY FIVE TIMES THE SIXMONTH LIMIT LONG AGO SET BY CONGRESS THE PROLONGED REVIEW SYSTEM CONTRIBUTES CONSIDERABLY TO THE TIMING AND COST OF BRINGING A NEW PHARMACEUTICAL PRODUCT TO MARKET NOW A MINDBOGGLING 12YEAR JOURNEY COSTING 200 MILLIONPLUS THESE COSTS AND DELAYS ARE LARGELY PASSED ON TO CONSUMERS UNFORTUNATELY THE ACT CONTAINS OPERATIONAL WEAKNESSES THAT IF UNCORRECTED WILL DELAY AND LIKELY CRIPPLE REALIZATION OF ITS WELLINTENDED OBJECTIVES ONE PROBLEM IS THAT THE ACT DOES NOT IN ITSELF AUTHORIZE THE FDA TO COLLECT AND SPEND USER FEES ALSO IT LACKS THE STRONG MECHANISMS NEEDED TO ASSURE THAT ALL USER FEES COLLECTED ARE APPLIED EFFECTIVELY AND ONLY TO THE NEW PROGRAM CONGRESS HAS BOTH A MORAL AND PRACTICAL OBLIGATION TO SEE THAT THE INITIATIVE WORKS AS IT WAS INTENDED AND SAVES INDUSTRY AND SOCIETY BILLIONS OF DOLLARS ANNUALLY THEREBY OBVIATING THE NEED FOR MANDATORY OR QUASIMANDATORY PHARMACEUTICAL PRICE CONTROLS IT CAN DO THAT BY USING THE APPROPRIATIONS BILL TO AUTHORIZE AND REQUEST THE FDA TO ESTABLISH AN INDEPENDENT BROADLY REPRESENTATIVE OVERSIGHT COMMISSION WITH STRONG FDA INPUT AND SUPPORT THE COMMISSION SHOULD BE RESPONSIBLE FOR PERFORMING FOUR KEY JOBS L MONITORING THE VERY LARGE FEES THE FDA COLLECTS TO ASSURE THEY ARE USED EFFECTIVELY AND ONLY FOR PROGRAM SUPPORT 2 ASSURING THE PROMPTNESS FAIRNESS AND SOUNDNESS OF THE VARIOUS REVIEW SYSTEMS THEIR ADMINISTRATIVE PROCESSES AND SCIENTIFIC STANDARDS 3 SETTING PROGRAM GOALS AND REVIEWSYSTEM PERFORMANCE AND AUDIT STANDARDS AND 4 REPORTING ANNUALLY TO CONGRESS AND THE FDA COMMISSIONER ON HOW WELL THE PROGRAM'S GOALS AND THE REVIEW SYSTEM'S STANDARDS ARE MET GIVEN WHAT IS AT STAKE NEITHER THE FDA NOR THE PHARMACEUTICAL INDUSTRY NOR INDEED THE NATION CAN ALLOW THIS IMPORTANT EXPERIMENTAL COMPACT BETWEEN GOVERNMENT AND INDUSTRY TO GO UNUSED OR MORE IMPORTANT TO BE MISUSED MR CURRAN IS A PROFESSOR OF LAW AND MEDICINE EMERITUS AND DIRECTOR OF THE TRAINING PROGRAM FOR BIOMEDICAL RESEARCH MANAGEMENT AT HARVARD UNIVERSITY MR NORRIS IS DIRECTOR FOR HEALTH SCIENCES AT HILL & KNOWLTON INC NEW YORK AND A LECTURER ON HEALTH LAW AT HARVARD HE WAS DEPUTY COMMISSIONER AND CHIEF OPERATING OFFICER OF THE FDA FROM 198588 9306070087 930607 POLITICS & POLICY HURT BY COSTLY EARLY MISTAKES CLINTON IS IN SHAKY POSITION FOR NEW CHALLENGES BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BILL CLINTON IS LEARNING THE HARD WAY JUST HOW COSTLY EARLY MISTAKES CAN BE TO A PRESIDENCY IN HIS FIRST FOUR MONTHS IN OFFICE MR CLINTON HAS TRIED TO PLEASE EVERYBODY AND ENDED UP PLEASING ALMOST NO ONE INDEED HE HAS BEEN DEFINED BY HIS MISTAKES RATHER THAN HIS ACCOMPLISHMENTS THE LATEST BLUNDER WAS IN THE WAY HE DUMPED LANI GUINIER FOR ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS AS A RESULT THE CONGRESSIONAL BLACK CAUCUS IS THREATENING TO WITHHOLD SUPPORT FOR ONE OF MR CLINTON'S HIGHEST PRIORITIESDEFICIT REDUCTION THE MODERATE WING OF THE DEMOCRATIC PARTY IS ALSO UNHAPPY EVEN TREASURY SECRETARY LLOYD BENTSEN ACKNOWLEDGES THAT THE AMERICAN PEOPLE THINK MR CLINTON IS TOO LIBERAL IN PART BECAUSE OF THE FOULUP OF A PROPOSAL DESIGNED TO APPEASE THE LEFT WINGTHE ECONOMICSTIMULUS PACKAGE THAT WAS KILLED IN THE SENATE IT WAS A ROCKY START CONCEDED SEN JOHN BREAUX D LA A CLINTON SUPPORTER IN AN APPEARANCE YESTERDAY ON NBCTV'S MEET THE PRESS THE QUESTION NOW IS WHETHER MR CLINTON CAN RECOVER AFTER SQUANDERING THE EARLY DAYS OF HIS TERM WHEN THE PUBLIC GOODWILL FOR HIM WAS AT ITS HIGHEST IT WON'T BE EASY HIS NEXT CHALLENGES ARE OBTAINING APPROVAL OF HIS MAMMOTH DEFICITREDUCTION BILL AND WINNING CONFIRMATION OF HIS CHOICE FOR THE SUPREME COURT WHICH IS EXPECTED TO BE INTERIOR SECRETARY BRUCE BABBITT THE DEFICITREDUCTION BILL WILL BE ESPECIALLY TOUGH BECAUSE IT WILL BE FOUGHT IN THE SENATE WHICH IS VOLATILE AND DEEPLY DIVIDED AND DEMOCRATS WILL HAVE ONE LESS VOTE REPUBLICAN KAY BAILEY HUTCHISON ON SATURDAY WON THE TEXAS SEAT HELD BY APPOINTED SEN BOB KRUEGER MR CLINTON'S AIDES ALSO KNOW THE CLOCK IS RUNNING DOWN SENIOR ADVISERS WERE SUMMONED TO THE WHITE HOUSE EARLY YESTERDAY MORNING TO PLOT STRATEGY ON THE PENDING TAX BILL WHILE AIDES PREPARING FOR THE SUPREME COURT APPOINTMENT WORKED BOTH WEEKEND DAYS THE OBSTACLES HAVE MADE THE PRESIDENT'S STAFF APPREHENSIVE ONE TOP AIDE HAS BEEN COMING TO WORK LATER EACH DAY OUT OF FEAR THAT SOMETHING ELSE WILL GO WRONG THE AIDE HAS REASON TO WORRY THE OUTLOOK FOR THE DEFICITREDUCTION BILL IS TREACHEROUS WITH THE PRESIDENT BEING BATTERED BY BOTH THE RIGHT AND THE LEFT OF HIS OWN DEMOCRATIC PARTY EARLIER THIS YEAR MR CLINTON TRIED TO PLEASE HIS LIBERAL CONSTITUENCY BY PROPOSING HIS SOCALLED INVESTMENT PACKAGE A COLLECTION OF SPENDING INCREASES THAT REPUBLICANS SUCCESSFULLY BLOCKED SECRETARY BENTSEN BELIEVES THAT THE EPISODE TARNISHED MR CLINTON AND THAT THE PUBLIC IS CONVINCED THE PRESIDENT LEANS TOO FAR TO THE LEFT IN AN INTERVIEW WITH THE INTERNATIONAL HERALD TRIBUNE SECRETARY BENTSEN SAID THERE WAS NO QUESTION THAT THE CLINTON PRESIDENCY TILTED MORE TOWARD THE LIBERAL SIDE THAN WAS INTENDED THAT WAS PARTICULARLY TRUE BECAUSE OF THE EMPHASIS ON THE STIMULUS PACKAGE THAT TROUBLE LINGERS SEN DAVID BOREN D OKLA A KEY CONSERVATIVE VOTE ON THE SENATE FINANCE COMMITTEE AND THE LEADING DEMOCRATIC OPPONENT OF MR CLINTON'S ENERGY TAX IS SCHEDULED TO MEET WITH REPUBLICAN LEADER ROBERT DOLE OF KANSAS TODAY TO DISCUSS THE DEFICITREDUCTION PLAN ACCORDING TO SEN DOLE MEANWHILE PRESIDENT CLINTON HAS BEEN TRYING TO CODDLE THE CONSERVATIVES BUT THOSE HIGHPROFILE EFFORTS ARE BRINGING THUNDER FROM THE LEFT WHEN HE HIRED VETERAN REPUBLICAN OPERATIVE DAVID GERGEN AS A COUNSELOR LIBERAL ACTIVISTS SNEERED AT WHAT THEY CALLED THE CLINTONGERGEN ADMINISTRATION AND WHEN HE DECIDED LESS THAN A WEEK LATER TO WITHDRAW MS GUINIER'S NOMINATION THE LIBERAL WING OF THE PARTY THREATENED TO REVOLT IN PARTICULAR THE 40MEMBER CONGRESSIONAL BLACK CAUCUS IS MULLING OPPOSITION TO THE PRESIDENT'S DEFICITREDUCTION PLAN PARTLY TO PROTEST THE TREATMENT OF MS GUINIER AND PARTLY BECAUSE OF SUBSTANTIAL ADDITIONAL CUTS IN MEDICARE OVER FIVE YEARS THAT ARE BEING CONSIDERED IN THE SENATE DISCUSSING THE CUTS YESTERDAY IN AN INTERVIEW ON MEET THE PRESS REP KWEISI MFUME D MD CHAIRMAN OF THE BLACK CAUCUS SAID I'M SAYING IT DOESN'T LOOK LIKE IT'S GOING TO FLY AND MR MFUME CONFIRMED THAT THE BLACK CAUCUS HAS REJECTED MR CLINTON'S INVITATION TO MEET TOMORROW ALTHOUGH IT MIGHT AGREE TO A MEETING LATER FOR THE SUPREME COURT THE CHOICE OF MR BABBITT OR ONE OF THE OTHER NAMES THAT HAS BEEN PUBLICLY DISCUSSED SUCH AS BOSTON FEDERAL APPEALS COURT JUDGE STEPHEN BREYER PROBABLY WILL PUT MR CLINTON IN GOOD STEAD HE SEEMS TO BE FOCUSING ON APPOINTING A PERSON OF MODERATE VIEWS WHO WOULD BE EASILY APPROVED BY THE SENATE ON THE OTHER HAND MR CLINTON'S JUSTICERELATED NOMINEES HAVE BEEN AMONG HIS MOST TROUBLED SUCH AS HIS UNSUCCESSFUL CHOICE OF ZOE BAIRD FOR ATTORNEY GENERAL WOMEN'S AND LIBERALACTIVIST GROUPS WILL COMPLAIN IF HE DOESN'T PICK A WOMAN OR A MINORITY AND UNINTENDED PROBLEMS COULD ARISE PARTICULARLY OVER POLITICAL CONSIDERATIONS WHITE HOUSE COUNSEL BERNARD NUSSBAUM HAS BEEN CRITICIZED FOR FAILING TO WARN THE PRESIDENT THAT MS GUINIER'S CONTROVERSIAL WRITINGS ABOUT CIVIL RIGHTS COULD SPARK POLITICAL OPPOSITION AND THEN FOR CONTINUING TO BACK HER EVEN AFTER A FIRESTORM ERUPTED IN THE SENATE BUT EVEN ADVERSARIES SUCH AS SEN DOLE DON'T COUNT MR CLINTON OUT THERE ARE GOING TO BE UPS AND DOWNS HE SAID ON MEET THE PRESS BUT PRESIDENT CLINTON HAS A LOT OF TIME 9306070086 930607 BUSINESS BRIEF CANADIAN PACIFIC FOREST PRODUCTS WOOD PRODUCTS UNIT SET UP 10 MILLION SHARES TO BE ISSUED CANADIAN PACIFIC FOREST PRODUCTS LTD SAID IT CREATED A NEW WOOD PRODUCTS SUBSIDIARY AND PLANS TO ISSUE 10 MILLION SHARES IN THE UNIT THE SUBSIDIARY PACIFIC FOREST PRODUCTS LTD IS TO BUY CP FOREST'S SAWMILLS PRIVATE TIMBERLANDS AND PUBLIC TIMBER TENURES IN BRITISH COLUMBIA CP FOREST WILL MAINTAIN MAJORITY CONTROL OVER THE UNIT'S VOTING SHARES DAVID G TOOLE CP FOREST'S SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SAID CREATION OF THE WEST COAST WOODPRODUCTS UNIT IS DESIGNED TO BRING OUT HIDDEN VALUE IN THE MONTREAL COMPANY WHICH PRIMARILY IS VIEWED AS A PRODUCER OF NEWSPRINT AND WOOD PULP THE OPERATIONS TO BE INCLUDED IN THE NEW UNIT GENERATED OPERATING EARNINGS OF 229 MILLION CANADIAN DOLLARS US18 MILLION ON C1734 MILLION IN SALES LAST YEAR CP FOREST SAID MOST OF THE UNIT'S SALES GO TO OFFSHORE MARKETS PRIMARILY JAPAN TERMS OF THE COMMONSHARE OFFERING ARE TO BE SET BY MIDJULY WITH CLOSING SCHEDULED FOR THE END OF JULY 9306070085 930607 LETTERS TO THE EDITOR LACTOSE INTOLERANCE AFFECTS 50 MILLION IN MAKERS OF REMEDIES BREED A CASH COW AS THEY PUBLICIZE LACTOSE INTOLERANCE APRIL 20 YOU REPORTED THAT THE PREVALENCE OF LACTOSE INTOLERANCE IS EXAGGERATED AS A GASTROENTEROLOGIST WHO HAS CONDUCTED RESEARCH ON LACTOSE MALDIGESTION I WOULD HAVE TO ARGUE THAT LACTOSE INTOLERANCE IN FACT IS EXTREMELY WIDESPREAD ACCORDING TO THE NATIONAL DIGESTIVE DISEASES INFORMATION CLEARINGHOUSE AN ARM OF THE NATIONAL INSTITUTES OF HEALTH 50 MILLION AMERICANS ARE LACTOSE INTOLERANT MY RESEARCH HAS IDENTIFIED LACTOSE MALDIGESTION IN ABOUT 25 OF PATIENTS WITH IRRITABLE BOWEL SYNDROME AND OTHER NONSPECIFIC OR UNDIAGNOSED ABDOMINAL COMPLAINTS PRELIMINARY DATA SUGGEST THAT LACTOSE MALDIGESTION IS A SIGNIFICANT CONTRIBUTORY FACTOR IN THEIR SYMPTOMS MY PERSONAL EXPERIENCE IN TALKING WITH PATIENTS EVERY DAY CONFIRMS MY RESEARCH IMPRESSIONS THAT WE SHOULD NOT TRIVIALIZE LACTOSE INTOLERANCE WHILE CONTINUING CLINICAL INVESTIGATION I DISAGREE WITH THE SCIENTISTS WHO WERE QUOTED IN YOUR ARTICLE AS SAYING THAT MOST PEOPLE WHO ARE LACTOSE INTOLERANT DON'T NEED TREATMENT OFTEN I ADVISE LACTOSE AVOIDANCE BUT MY PATIENTS WANT RELIEF FROM THEIR RECURRING STOMACH DISCOMFORT AND THEY DON'T WANT TO GIVE UP THEIR FAVORITE DAIRY FOODS FOR THEM I RECOMMENDED NATURAL ENZYME SUPPLEMENTS 9306070084 930607 WORLD MARKETS HOT STREAK FOR HELSINKI STOCKS UP 40 FOR 1993 MAY ENDURE ON IMPROVED FINNISH FUNDAMENTALS BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL EUROPE'S HOTTEST STOCK MARKET IS HELSINKI WHERE THE HEX GENERAL INDEX IS UP A SIZZLING 40 FOR THE YEAR TO DATE NOT LONG AGO THAT KIND OF RALLY WOULD HAVE HAD SAVVY INTERNATIONAL INVESTORS NERVOUSLY PLANNING TO PULL OUT OF THE FINNISH MARKET AFTER ALL HELSINKI'S HISTORY IS STUDDED WITH BOOMANDBUST CYCLES AND ONCE A DECLINE GETS UNDER WAY TRADING LIQUIDITY USUALLY EVAPORATES PUNISHING LAGGARD INVESTORS WITH BIG LOSSES BUT THIS TIME ANALYSTS AND INVESTORS SAY THE UPTURN COULD PROVE MORE ENDURING REFLECTING THAT UPBEAT MOOD THE HEX INDEX HAS HELD FIRM DESPITE POLITICAL UPHEAVAL AND AN AVALANCHE OF RECENT STOCK OFFERINGS ANNOUNCED OR COMPLETED MONEY IS STILL SCARCE IN RECESSIONRIDDEN FINLAND SO MOST OF THE NEW STOCK IS BEING TARGETED AT INTERNATIONAL INVESTORS AND THE APPETITE SEEMS TO BE AMPLE JUERG GRIMM A NEW YORKBASED MUTUAL FUND MANAGER AT SWISS BANK CORP HAS PICKED UP SOME OF THE NEW ISSUES THOUGH HIS GLOBAL FUND IS HEAVILY OVERWEIGHT IN FINNISH STOCKS MR GRIMM ADMITS BEING WARY ABOUT HANGING AROUND TOO LONG YET HE EXPECTS FINLAND'S ECONOMIC RECOVERY TO REMAIN ROBUST THROUGH 1995 THE HEX INDEX LAST TUESDAY AND WEDNESDAY HIT A ROUGH PATCH SHEDDING 60 POINTS OR ABOUT 5 BUT IT REBOUNDED 155 POINTS THURSDAY WHILE IT EDGED DOWN 59 FRIDAY TO CLOSE AT 116423 THE INDEX IS STILL UP MORE THAN 40 SINCE JAN 1 MR GRIMM WAS UNFAZED BY LAST WEEK'S DROP IT WAS HEALTHY FOR THE MARKET TO SEE A LITTLE CORRECTION AND CONSOLIDATION CONSIDERING HOW FAST IT'S SHOT UP IN RECENT MONTHS THAT RECOVERY COMES FROM EXCEPTIONALLY DEPRESSED LEVELS FINNISH STOCKS HAVE FOLLOWED THE NATION'S ECONOMY TO UNPRECEDENTED DEPTHS IN RECENT YEARS FROM AN APRIL 1989 PEAK OF 200954 THE HEX TUMBLED TO 765 BY NOVEMBER 1991 WHEN FINLAND'S GOVERNMENT DEVALUED THE MARKKA CURRENCY BY 12 AFTER RALLYING EARLY LAST YEAR THE INDEX FELL TO 541 IN SEPTEMBER JUST BEFORE THE GOVERNMENT SCRAPPED ITS FIXED EXCHANGERATE POLICY IN EFFECT DEVALUING THE CURRENCY A SECOND TIME IN LESS THAN A YEAR SINCE THE MARKKA BEGAN FLOATING THE HEX HAS NEARLY DOUBLED LEGISLATIVE CHANGES ALSO HELPED BUOY INTEREST IN STOCKS ON JAN 1 THE GOVERNMENT ABOLISHED CURBS ON FOREIGN OWNERSHIP OF FINNISH COMPANIES VASTLY EXPANDING THE VOLUME OF STOCK ACCESSIBLE TO GLOBAL INVESTORS FINLAND'S PRO RATA WEIGHTING AMONG EUROPEAN BOURSES JUMPED SEVEN TIMES TO 07 FROM 01 PREVIOUSLY SPURRING ADDITIONAL PURCHASES OF FINNISH SHARES BY BIG EUROPEAN INDEX FUNDS MEANWHILE THE MARKKA'S 30 DEVALUATION AGAINST THE DOLLAR AND OTHER MAJOR CURRENCIES VASTLY ENHANCED THE INTERNATIONAL COMPETITIVE CLOUT OF FINNISH COMPANIES THAT HAVE MAINLY DOMESTIC COSTS BUT A MAJORITY OF REVENUES ABROAD AS A RESULT MANY BLUECHIP CORPORATIONS SEEM ON THE BRINK OF A PROFIT EXPLOSION ANALYSTS AT KANSALLIS OSAKE PANKKI FINLAND'S BIGGEST BANK ESTIMATE THAT EXCLUDING BANKS AGGREGATE 1993 CORPORATE EARNINGS WILL REBOUND TO 911 MILLION FINNISH MARKKAA 1684 MILLION FROM NET LOSSES OF 67 BILLION MARKKAA A YEAR EARLIER NEXT YEAR KOP ESTIMATES CORPORATE NET INCOME WILL SURGE SIXFOLD TO 58 BILLION MARKKAA NONETHELESS MANY ECONOMISTS WARN THAT PROSPERITY WILL BE CONFINED TO EXPORT COMPANIES FOR AT LEAST TWO MORE YEARS THIS YEAR GROSS NATIONAL PRODUCT IS EXPECTED TO FALL ABOUT 1 FOR THE THIRD CONSECUTIVE ANNUAL DECLINE DOMESTIC DEMAND PROBABLY WON'T INCREASE UNTIL 1995 EXACERBATING POLITICAL STRAINS ON THE FRAGILE CENTERRIGHT COALITION GOVERNMENT THE CRIPPLED BANKING INDUSTRY HAS REINED IN LENDING SO A CREDIT CRUNCH COULD HOLD BACK INDUSTRIAL INVESTMENT AND THUS THE SCOPE OF ECONOMIC EXPANSION SAID JUSSI MUSTONEN KOP'S CHIEF ECONOMIST MOREOVER SOME SKEPTICS QUESTION WHETHER THE BULL MARKET CAN LAST THAT LONG THE POTENTIAL EXPLOSION IN CORPORATE EARNINGS MAKES FINLAND VERY ATTRACTIVE BUT YOU DON'T HAVE TO BE THERE A LONDON INVESTMENT BANKER SAID SO INVESTORS WILL ONLY STAY AS LONG AS HELSINKI REMAINS MORE EXCITING THAN ALTERNATIVES LIKE GERMANY AND FRANCE IN RELATIVE TERMS THE CURRENT BURST OF STOCK OFFERINGS PROMISES TO BE A GAUGE OF MARKET RESILIENCE SO FAR A HALFDOZEN BANKS AND COMPANIES HAVE UNVEILED PLANS TO RAISE NEARLY 4 BILLION MARKKAA IN NEW EQUITY OR CONVERTIBLE BOND OFFERINGS LAST YEAR COMPANIES ISSUED 19 BILLION MARKKAA IN NEW EQUITY BUT ALMOST ALL THE STOCK WAS USED TO FINANCE DOMESTIC ACQUISITIONS MOST ISSUERS THIS TIME AROUND PLAN TO USE FUNDS TO REDUCE PAINFULLY HIGH DEBT THE EQUITYTOASSETS RATIO FOR THE CORPORATE SECTOR LANGUISHES AT AN ANEMIC 20 TO 30 TOKYO STOCK PRICES SKIDDED FRIDAY ON PROFITTAKING LONDON SHARES FELL ON CONCERNS ABOUT EUROPEAN INTEREST RATES WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10751 DOWN 110 REFLECTING A DROP IN EUROPEAN AMERICAN AND ASIA/PACIFIC MARKETS ENTERTAINMENT STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 14634 UP 127 OR 088 WITH TIME WARNER OF THE US POSTING A 36 GAIN IN ITS LOCAL CURRENCY WATER UTILITY STOCKS TRAILED AT 10497 DOWN 333 OR 31 WITH EAUX OF FRANCE SLIDING 22 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH RALLIED 38430 POINTS THURSDAY LOST 19376 TO 2088224 NEAR THE SESSION'S LOW OF 2084168 THE NIKKEI ON THE PREVIOUS DAY CLOSED ABOVE 21000 FOR THE FIRST TIME SINCE EARLY MAY BUT IT HASN'T HELD THERE FOR TWO CONSECUTIVE SESSIONS IN 15 MONTHS ON MONDAY THE NIKKEI ROSE 13904 POINTS TO CLOSE THE MORNING SESSION AT 2102128 FRIDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 550 MILLION SHARES DOWN FROM 6099 MILLION SHARES ON THURSDAY LOSERS TOPPED GAINERS565471 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ROSE 3067 POINTS THURSDAY DROPPED 443 TO 167170 IN LONDON ON THE LAST DAY OF A TRADING ACCOUNT THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX GAVE UP 229 POINTS TO 28299 THE FT 30STOCK INDEX LOST 123 POINTS TO 22131 VOLUME WAS 6256 MILLION SHARES COMPARED WITH 5682 MILLION SHARES A DAY EARLIER EXPECTATIONS THAT EUROPEAN LENDINGRATE CUTS WILL BE DELAYED BY GERMANY'S RELUCTANCE TO EASE ITS RATES UNDERMINED LONDON SENTIMENT AS DID CONCERNS ABOUT PROLONGED RECESSION IN FRANKFURT SHARES ROSE TWICE TESTING A TECHNICAL BARRIER OF 1640 ON THE DAX 30STOCK INDEX BUT UNABLE TO STAY THERE THE INDEX ADDED 823 POINTS TO 163785 PARIS PRICES FELL PARTLY ON MIXED US ECONOMIC NEWS FEEDING SKEPTICISM ABOUT A SUSTAINABLE RECOVERY MILAN STOCKS SLUMPED AS SENTIMENT ABOUT MARKET FUNDAMENTALS TURNED BEARISH SOME STOCKS ARE EXPENSIVE IN RELATIONS TO EXPECTED CORPORATE EARNINGS MADRID SHARES GAINED ON OPTIMISM THAT YESTERDAY'S ELECTIONS WOULD BE FOLLOWED BY A CUT IN INTEREST RATES ZURICH STOCKS GAINED ON STRONG BUYING BY FOREIGN AND SWISS INVESTORS BULLISH ABOUT CORPORATE GROWTH A HIGHER DOLLAR SUPPORTED MULTINATIONALS HERE ARE PRICE TRENDS ON THE WORLD'S MAJOR STOCK MARKETS AS CALCULATED BY MORGAN STANLEY CAPITAL INTERNATIONAL PERSPECTIVE GENEVA TO MAKE THEM DIRECTLY COMPARABLE EACH INDEX CALCULATED IN LOCAL CURRENCIES IS BASED ON THE CLOSE OF 1969 EQUALING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9306070083 930607 LETTERS TO THE EDITOR TREATMENT GUIDELINES REDUCE MEDICAL COSTS THE STATE OF MAINE IS DOING A LOT MORE TO CONTROL MEDICAL COSTS THAN YOU REPORTED SO WELL IN YOUR MAY 3 PAGE ONE ARTICLE ON TREATMENT GUIDELINES TO CURB LEGAL EXPOSURE FOR PHYSICIANS IN 1981 MAINE'S MEDICAL SOCIETY CREATED THE MAINE MEDICAL ASSESSMENT FOUNDATION THAT GROUP'S RESEARCH IS PROVIDING PHYSICIAN GUIDELINES ON THE APPROPRIATENESS OF SPECIFIC MEDICAL PROCEDURES SUCH AS PROSTATE SURGERY FOR SPECIFIC POPULATIONS AND AS A CONSEQUENCE THERE HAVE BEEN MEASURABLE DECREASES IN THE USE OF PROCEDURES THAT ARE NOT CLINICALLY INDICATED ALSO UNDER WAY UNDER THAT SAME AEGIS IS A PLAN TO SEEK A FEDERAL MEDICARE WAIVER THAT WILL ALLOW THE STATE TO SET A STATEWIDE BUDGET CEILING TO CONTROL MEDICAL CARE COSTS FOR MAINE'S ELDERLY POPULATION THE PLAN WILL BE DRAWN UP AND AGREED TO BY MAINE'S PHYSICIANS AND HEALTHCARE PROVIDERS PARALLEL TO THIS WORK AND ALIGNING LAY LEADERS MAINE PHYSICIANS HOSPITAL LEADERS AND TRUSTEES IS AN ONGOING CONSENSUSBUILDING EXERCISE ON HEALTHCARE COSTS THAT WILL UNDOUBTEDLY LEAD TO SIGNIFICANT RESTRUCTURING OF THE HOSPITAL SYSTEM WHAT IS GOING ON IN MAINE IS A STORY WORTH TELLING FOR IT IS THE STORY OF RESPONSIBLE CITIZENRY ON THE PART OF SOME OF MAINE'S MOST RESPECTED LAYMEN AND WOMEN IN CONCERT WITH THE HEALTHCARE PROFESSIONS AND INSTITUTIONS THE COMMONWEALTH FUND IS PROUD TO HAVE PROVIDED SOME OF THE FUNDING NEEDED TO GET ALL THIS WORK DONE 9306070082 930607 BUSINESS BRIEF SHAWMUT NATIONAL CORP SALE OF AT LEAST 250 MILLION OF PROBLEM ASSETS IS LIKELY SHAWMUT NATIONAL CORP IS CONSIDERING SELLING 250 MILLION TO 350 MILLION OF PROBLEM ASSETS TO GOLDMAN SACHS & CO AND JE ROBERT COS THE DEAL WHICH COULD CLOSE BY JUNE 30 WOULD ELIMINATE MORE THAN A THIRD OF SHAWMUT'S 777 MILLION IN NONPERFORMING ASSETS AND LEAVE THE HARTFORD CONN BANK HOLDING COMPANY WITH NONPERFORMING ASSETS TOTALING ABOUT 35 OF ALL LOANS AND FORECLOSED PROPERTIES IN 1990 SHAWMUT'S NONPERFORMING ASSETS REACHED A HIGH OF 107 OF TOTAL LOANS AND FORECLOSED PROPERTIES A SPOKESMAN FOR JE ROBERT AN ASSETMANAGEMENT FIRM IN ALEXANDRIA VA CONFIRMED THAT IT AND GOLDMAN SACHS AN INVESTMENTBANKING FIRM HAVE OFFERED TO PAY SHAWMUT ABOUT 150 MILLION TO 200 MILLION FOR THE ASSETSSOME OF WHICH ARE STILL PERFORMING BUT THAT MAY BECOME TROUBLED SHAWMUT DECLINED TO COMMENT ON THE POSSIBLE SALE WHICH WOULD MOSTLY INVOLVE PROPERTIES IN MASSACHUSETTS AND CONNECTICUT GOLDMAN SACHS OFFICIALS DIDN'T RETURN TELEPHONE CALLS 9306070081 930607 PRICING DATA ON MUNICIPAL SECURITIES TO BE PROVIDED TO INDIVIDUALS BY BOARD BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON IN AN EFFORT TO GIVE INDIVIDUAL INVESTORS READY ACCESS TO MUNICIPALBOND PRICE INFORMATION THE MUNICIPAL SECURITIES RULEMAKING BOARD SAID IT PLANS TO COLLECT AND PUBLISH DATA ON THE MARKET VALUE OF FREQUENTLY TRADED MUNICIPAL SECURITIES SUCH BOND PRICE INFORMATION BELONGS IN THE PUBLIC DOMAIN SAID MSRB EXECUTIVE DIRECTOR CHRISTOPHER TAYLOR CURRENTLY MUNICIPALBOND INVESTORS PARTICULARLY INDIVIDUALS CAN OBTAIN MUNICIPALBOND PRICES ONLY THROUGH THE SECURITIES PROFESSIONALS WHO SEE PRICES IN THE INTERDEALER MARKET MR TAYLOR SAID THAT PUBLISHING THE DATA WILL ENHANCE MARKET TRANSPARENCY AND PROMOTE INVESTORS' CONFIDENCE IN THE MARKET TRANSPARENCY REFERS TO THE DEGREE TO WHICH PRICE AND OTHER KEY INFORMATION IS AVAILABLE TO MARKET PARTICIPANTS ON A TIMELY BASIS A HIGH DEGREE OF TRANSPARENCY ALLOWS INVESTORS TO JUDGE WHETHER THEIR BROKERS ARE TREATING THEM FAIRLY THE MSRB'S PILOT PROGRAM WOULD PUBLISH INFORMATION ABOUT THE VALUE OF MUNICIPAL BONDS AS REFLECTED BY ACTUAL TRANSACTIONS IN THE MARKET THE BOARD CITED THE INCREASING PARTICIPATION OF RETAIL CUSTOMERS IN THE MUNICIPALBOND MARKET AND STRESSED THE IMPORTANCE OF INVESTORS' HAVING CONFIDENCE IN THE MARKET AND ITS PRICING MECHANISMS THE MSRB SAID THE PROJECT WON'T REQUIRE DEALERS TO UNDERTAKE ANY ADDITIONAL ACTIONS OR COSTS SEPARATELY THE MSRB MOVED TO STRENGTHEN ITS SUITABILITY RULES TO REMOVE ANY DOUBT OVER THE OBLIGATIONS OF DEALERS TO DETERMINE WHETHER THE SECURITIES RECOMMENDED TO THEIR CUSTOMERS ARE SUITABLE FOR THOSE CUSTOMERS IN SO DOING IT NOTED THAT INDIVIDUAL INVESTORS OF VARYING DEGREES OF SOPHISTICATION NOW CONSTITUTE A MUCH LARGER AND GROWING PART OF THE MUNICIPALSECURITIES INVESTOR BASE THE BOND PRICE PUBLICATION PROJECT WILL HAVE TO BE APPROVED BY THE SECURITIES AND EXCHANGE COMMISSION WHICH HAS BEEN A STRONG SUPPORTER OF INCREASED TRANSPARENCY IN FINANCIAL MARKETS THE MSRB PLANS TO PROVIDE PRICE INFORMATION ON FREQUENTLY TRADED BONDS AND IT INVITED COMMENTS ON HOW THAT PHRASE SHOULD BE DEFINED IT SAID IT EXPECTS TO PROVIDE ON A DAILY BASIS A LIST CONTAINING PRICE INFORMATION ON AN AVERAGE OF 180 BOND ISSUES THE SYSTEM IS EXPECTED TO BE UP AND RUNNING WITHIN 18 MONTHS THE PRICES WOULD COME FROM TRANSACTIONS IN THE INTERDEALER MARKET THE MSRB IS WORKING ON TECHNICAL QUESTIONS WITH THE NATIONAL SECURITIES CLEARING CORP THE CENTRAL PROCESSING FACILITY FOR AUTOMATED COMPARISON OF MUNICIPALSECURITIES TRANSACTIONS THE MSRB IS A SELFREGULATORY BODY SUBJECT TO SEC OVERSIGHT ITS LATEST MOVES COMING ON THE HEELS OF AN ANNOUNCEMENT LAST MONTH THAT IT IS CONSIDERING REQUIRING DEALERS TO DISCLOSE POLITICAL CONTRIBUTIONS BEFORE ENGAGING IN UNDERWRITING ACTIVITY OCCUR AS THE MUNICIPALBOND MARKET HAS COME UNDER ITS MOST INTENSE REGULATORY SCRUTINY IN MANY YEARS THIS SCRUTINY HAS LARGELY RESULTED FROM ALLEGATIONS OF ILLEGAL PAYMENTS AND OTHER IMPROPRIETY IN CONNECTION WITH A 29 BILLION NEW JERSEY TURNPIKE BOND ISSUE BUT ALSO BUILDS ON YEARS OF COMPLAINTS ABOUT INADEQUATE DISCLOSURE IN THE MARKETPLACE PLANNING FOR THE MSRB'S NEW STEPS STARTED WELL BEFORE THE CURRENT MARKET SCRUTINY 9306070080 930607 NORTHWEST ASKS COURT TO NULLIFY RESTRICTION IMPOSED BY AUSTRALIA SYDNEY AUSTRALIA AP NORTHWEST AIRLINES TOOK THE AUSTRALIAN GOVERNMENT TO COURT FRIDAY AFTER BOTH SIDES WARNED THAT A STANDOFF OVER FLIGHTS COULD WORSEN THE DISPUTE CENTERS ON PASSENGER RATIOS FOR THREE WEEKLY FLIGHTS THAT LINK NEW YORK OSAKA JAPAN AND SYDNEY NORTHWEST ST PAUL MINN HAS ASKED THE AUSTRALIAN FEDERAL COURT TO OVERTURN A GOVERNMENT DEMAND THAT NO MORE THAN 50 OF THE PASSENGERS ON EACH FLIGHT BOARD IN OSAKA MEANING AT LEAST 50 MUST BOARD IN THE US AUSTRALIA RECENTLY ANNOUNCED THE RESTRICTIONS WHICH TAKE EFFECT JUNE 30 PROMPTING THE US DEPARTMENT OF TRANSPORTATION TO CANCEL SOME US SERVICE BY AUSTRALIAN CARRIER QUANTAS AIRWAYS LTD EFFECTIVE THAT DATE NORTHWEST A UNIT OF WINGS HOLDINGS INC CLAIMS THE REGULATION VIOLATES THE USAUSTRALIAN AVIATION TREATY HOWEVER AUSTRALIA SAYS NORTHWEST AGREED IN WRITING TO THE CONDITION BEFORE IT STARTED THE SERVICE IN 1991 LAWYERS FOR BOTH SIDES TOLD THE COURT THE MATTER SHOULD BE TREATED QUICKLY THOUGH A FRIDAY HEARING WAS DEVOTED TO LEGAL ARGUMENT ABOUT WHAT DOCUMENTS NORTHWEST CAN OBTAIN FROM THE AUSTRALIAN GOVERNMENT ABOUT OTHER AIRLINES' PASSENGER RATIOS THE MAIN HEARING IS SET FOR JULY 12 9306070079 930607 CHIP MAKERS CALL FOR EASING BURDEN ON JAPAN US COMPANIES DECLARE VICTORY IN THEIR EFFORT TO BOOST MARKET SHARE BY WALL STREET JOURNAL REPORTERS DAVID P HAMILTON IN TOKYO AND BOB DAVIS IN WASHINGTON AFTER HECTORING THE US GOVERNMENT FOR NEARLY A DECADE TO BLAST OPEN THE JAPANESE MARKET US SEMICONDUCTOR MAKERS MEETING IN TOKYO SAID WASHINGTON NOW SHOULD LEAVE JAPAN ALONE THE REMARKABLE TURNAROUND ACCOMPANIED BY A DECLARATION FROM THE COMPANIES OF VICTORY IN THEIR STRUGGLE FOR A SUBSTANTIAL SHARE OF THE JAPANESE MARKET CAME JUST A FEW DAYS BEFORE THE CLINTON ADMINISTRATION PLANS TO DELIVER ITS TRADE DEMANDS IN NEW TALKS WITH JAPAN THOSE DEMANDS ARE BASED IN LARGE MEASURE ON THE MARKETSHARE ARRANGEMENTS PIONEERED IN THE SEMICONDUCTOR ACCORD UNDER WHICH THE US INSISTED THAT THE FOREIGN SHARE OF JAPAN'S CHIP MARKET GROW TO AT LEAST 20 BY THE END OF 1992 I THINK WE WILL ALL BE HAPPIER WITH LESS GOVERNMENT INVOLVEMENT IN SEMICONDUCTOR TRADE SAID PAT WEBER AN EXECUTIVE VICE PRESIDENT AT TEXAS INSTRUMENTS INC MR WEBER WAS SPEAKING AT A NEWS CONFERENCE FRIDAY IN TOKYO AFTER AN ANNUAL MEETING BETWEEN THE US SEMICONDUCTOR INDUSTRY ASSOCIATION AND ITS JAPANESE COUNTERPART THE SEMICONDUCTOR INDUSTRY'S ABOUTFACE ILLUSTRATES THE DIFFICULTY OF TRYING TO PRY OPEN JAPANESE MARKETS ONCE COMPANIES GAIN A FOOTHOLD IN A JAPANESE CARTEL SAID MARCUS NOLAND A JAPAN SPECIALIST AT THE INSTITUTE FOR INTERNATIONAL ECONOMICS THEY OFTEN BECOME DEFENDERS OF THE STATUS QUO THE JAPANESE WILL TRY TO COOPT A COMPANY MR NOLAND SAID THEN THE COMPANY WILL FIND ITS JAPANESE SUBSIDIARY IS AMONG ITS MOST PROFITABLE AND TELL THE US GOVERNMENT TO BACK OFF THE INSTITUTE IS A WASHINGTON THINK TANK THAT PATTERN ALSO HAS BEEN EVIDENT IN THE CONSTRUCTION INDUSTRY THE US HAS BEEN PRESSING JAPAN FOR YEARS TO LIBERALIZE ITS SYSTEM FOR BIDDING ON CONSTRUCTION CONTRACTS BUT SEVERAL YEARS AGO A FEW US COMPANIES THAT HAD GAINED A FOOTHOLD IN THE MARKET LOBBIED AGAINST FURTHER US ACTION PARTLY BECAUSE THEY FEARED ADDITIONAL COMPETITION COULD CUT INTO THEIR PROFITS ACCORDING TO AN ANALYSIS BY THE INSTITUTE THE US SEMICONDUCTOR INDUSTRY TURNED TO WASHINGTON FOR HELP IN THE MID1980S WHEN JAPANESE COMPANIES WERE MAKING BIG GAINS IN THE WORLD MARKET MEMBERS OF THE US INDUSTRY COMPLAINED THAT JAPAN'S CLOSED HOME MARKET GAVE THEIR COMPETITORS AN UNFAIR EDGE THE RESULT WAS A PAIR OF USJAPAN AGREEMENTS AIMED AT INCREASING THE FOREIGN SHARE OF THE JAPANESE CHIP MARKET IN A HUGE SURPRISE TO ALL SIDES FOREIGN COMPANIES CAPTURED A 202 SHARE OF THE JAPANESE CHIP MARKET IN 1992'S FOURTH QUARTER ACHIEVING THE QUOTA CALLED FOR IN THE SEMICONDUCTOR ACCORD THAT SUCCESS GAVE A BIG BOOST TO US BUSINESS OFFICIALS WHO HAD BEEN ARGUING THAT THE US SHOULD USE SUCH NUMERICAL TARGETS TO PROD JAPAN TO OPEN ITS MARKET IN THE COMING TRADE TALKS THE US PLANS TO PUSH FOR THE USE OF VARIOUS NUMERICAL STANDARDS INCLUDING MARKET SHARE TO GAUGE WHETHER JAPANESE MARKETS SUCH AS THOSE FOR COMPUTERS CARS AND TELECOMMUNICATIONS BECOME MORE LIBERALIZED AT FRIDAY'S NEWS CONFERENCE HOWEVER US SEMICONDUCTOR EXECUTIVES PLAYED DOWN THE NEED FOR FURTHER NUMERICAL TARGETS SAYING THAT THE US COMPUTERCHIP MAKERS SHOULD DO WELL IN THE FUTURE EVEN IN JAPAN THE NEEDS OF THE MARKET HAVE TURNED IN OUR FAVOR SAID WILFRED CORRIGAN CHAIRMAN OF LSI LOGIC CORP TEXAS INSTRUMENTS' MR WEBER ADDED THAT FOREIGN PARTNERS ARE BECOMING PART OF THE JAPANESE KEIRETSU' REFERRING TO THE CLOSE CARTELLIKE NETWORKS OF JAPANESE SUPPLIERS THAT ARE A CENTRAL ELEMENT OF JAPAN INC UNTIL RECENTLY US INDUSTRY OFFICIALS WERE CAUTIOUS ABOUT THE SEMICONDUCTOR MARKET IN JAPAN WORRYING THAT THEIR UNEXPECTED INCREASE IN MARKET SHARE COULD HAVE BEEN A ONETIME EVENT CAUSED BY JAPANESE GOVERNMENT PRESSURE ON COMPANIES THERE TO BUY AMERICAN AT THE NEWS CONFERENCE THOUGH US COMPANY OFFICIALS APPEARED CONFIDENT THAT THEY HAD ESTABLISHED A LASTING PRESENCE IN JAPAN MR CORRIGAN SAID US COMPANIES' SHARE OF THE JAPANESE MARKET SHOULD CONTINUE TO INCREASE BECAUSE THE US COMPANIES EXCEL AT MAKING HIGHLY PROFITABLE CHIPS FOR COMPUTERS AND THE NEXT GENERATION OF PORTABLE COMMUNICATION DEVICES AND OTHER MULTIMEDIA PRODUCTS JAPANESE COMPANIES IN CONTRAST MAKE MOSTLY LOWPRICED COMMODITY SEMICONDUCTORS SUCH AS MEMORY CHIPS THE ARGUMENTS AGAINST FURTHER GOVERNMENT INVOLVEMENT IN SEMICONDUCTOR TRADE APPEARED TO UNDERCUT ARGUMENTS MADE BY US TRADE REPRESENTATIVE MICKEY KANTOR ACTING AT THE BEHEST OF THE SEMICONDUCTOR INDUSTRY HE HAS BEEN PRESSING JAPAN TO MAKE SURE THAT FOREIGN SEMICONDUCTOR SALES DON'T FALL BELOW 20 LATER THIS YEAR NEITHER SIDE HAD DISCUSSED FUTURE YEARS BUT IT WAS ASSUMED THAT THE US WOULD BE PUSHING FOR AN EVEN LARGER SHARE OF THE JAPANESE MARKET A SPOKESMAN FOR THE SEMICONDUCTOR INDUSTRY SAID IT IS SUPPORTING MR KANTOR'S APPROACH IT'S OVERSTATING IT TO SAY WE DON'T NEED ANY GOVERNMENT HELP ANYMORE HE SAID BUT WE'RE NOT PEGGING ANY NUMBER TO IT JAPAN SEEMED RELIEVED THAT THE US COMPUTERCHIP COMPANIES AMONG THE MOST EFFECTIVE LOBBYISTS IN WASHINGTON ARE READY TO DROP THEIR CONFRONTATIONAL STANCE WE HAVE A NEW ERA OF COOPERATION SAID NOBUO KANOI EXECUTIVE DEPUTY PRESIDENT AT SONY CORP AND CHAIRMAN OF THE JAPANESE INDUSTRY COMMITTEE THAT ENCOURAGES PURCHASES OF FOREIGN SEMICONDUCTORS BUT CLYDE PRESTOWITZ A FORMER US TRADE NEGOTIATOR WHO WORKED ON SEMICONDUCTOR ISSUES SAID THE TURNAROUND MAY HAVE COME IN RESPONSE TO MOUNTING PRESSURE FROM TOKYO IN ANTICIPATION OF THE NEW CLINTON TRADE POLICY MAYBE THEY'RE CONCERNED THEY WILL LOSE BUSINESS BECAUSE OF THE JAPANESE GOVERNMENT MR PRESTOWITZ SAID IN TOKYO A FOREIGN MINISTRY OFFICIAL SAID JAPAN IS PUTTING TOGETHER ITS OWN DEMANDS ON THE US FOR THE NEW TRADE TALKS THESE COULD INCLUDE A REITERATION OF DEMANDS THAT JAPAN MADE SEVERAL YEARS AGO IN TALKS BEGUN DURING THE BUSH ADMINISTRATION AMONG THEM THAT THE US CUT ITS BUDGET DEFICIT THE OFFICIAL SAID JAPAN IS ALSO CONCERNED ABOUT US IMPEDIMENTS TO FREE TRADE SUCH AS THE BUYAMERICAN PROVISIONS IN SOME GOVERNMENT PROCUREMENT PROGRAMS 9306070078 930607 BABBITT IS NOW TOP CONTENDER FOR HIGH COURT CLINTON SAID TO BE READY TO NAME INTERIOR CHIEF AS NOMINEE THIS WEEK BY JEFFREY H BIRNBAUM AND JOE DAVIDSON STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON INTERIOR SECRETARY BRUCE BABBITT IS THE CLEAR FRONTRUNNER FOR THE NOMINATION FOR THE SUPREME COURT WITH THE EXPECTATION THAT PRESIDENT CLINTON WILL NAME MR BABBITT TO THE HIGH COURT EARLY THIS WEEK WHITE HOUSE OFFICIALS ARE MAKING FINAL PREPARATIONS INCLUDING FINISHING BACKGROUND CHECKS AND CONSULTING WIDELY ABOUT THE PROSPECTS FOR MR BABBITT'S CONFIRMATION THE 54YEAROLD MR BABBITT PROBABLY WILL HAVE BROAD SUPPORT IN THE SENATE YESTERDAY ON CBSTV'S FACE THE NATION SEN PATRICK LEAHY D VT A MEMBER OF THE SENATE JUDICIARY COMMITTEE PRAISED MR BABBITT I THINK HE WOULD BE A GOOD CHOICE HE SAID BUT SOME REPUBLICANS COULD BALK ON THE SAME TELEVISION SHOW SEN ORRIN HATCH R UTAH THE RANKING REPUBLICAN ON THE PANEL SAID HE WOULD HAVE TO WAIT AND SEE ABOUT A BABBITT NOMINATION IN PARTICULAR HE SAID REPUBLICANS AND SOME DEMOCRATS MIGHT WORRY THAT A FORMER POLITICIAN SUCH AS MR BABBITT MIGHT BE TOO MUCH OF AN ACTIVIST AS A JUSTICE MR HATCH SAID MR BABBITT MIGHT IMPOSE HIS OWN IDEA OF WHAT IS RIGHT OR WRONG IN THE LAW RATHER THAN APPLYING THE LAW ITSELF MR BABBITT HAS BEEN ON THE LIST OF CANDIDATES FOR THE SUPREME COURT SINCE JUSTICE BYRON WHITE ANNOUNCED IN MARCH THAT HE WOULD RETIRE AT THE END OF THIS TERM RECENTLY MR CLINTON TALKED TO MR BABBITT ABOUT THE POSITION AIDES SAID WHICH WAS A STRONG INDICATION THAT HE WAS A LEADING CONTENDER ONE OF MR BABBITT'S ADVANTAGES IS THAT HE AND MR CLINTON HAVE KNOWN EACH OTHER FOR YEARS AND THE PRESIDENT PREFERS APPOINTING PEOPLE HE KNOWS TO HIGH OFFICE ANOTHER SERIOUS CONTENDER FOR THE JOB BOSTON FEDERAL APPEALS COURT JUDGE STEPHEN BREYER IS HIGHLY REGARDED FOR HIS INTELLECT JUDICIAL CRAFTSMANSHIP AND BROAD PUBLIC POLICY EXPERIENCE BUT MR CLINTON DOESN'T KNOW JUDGE BREYER PERSONALLY AND HASN'T TALKED TO HIM ABOUT THE HIGH COURT MR BABBITT FITS MR CLINTON'S CRITERIA FOR A JUSTICE THE PRESIDENT HAS WANTED A PERSON WITH A KEEN MIND AND NATIONAL STATURE MR BABBITT ISN'T KNOWN AS A LEGAL SCHOLAR BUT HE IS A GRADUATE OF HARVARD LAW SCHOOL SERVED AS ATTORNEY GENERAL OF ARIZONA AND HAS PRACTICED LAW PRIVATELY HE GAINED NATIONAL ATTENTION AS AN INNOVATIVE TWOTERM GOVERNOR OF ARIZONA AND AS A 1988 PRESIDENTIAL CANDIDATE MR CLINTON HAS BEEN INTERESTED IN APPOINTING GOVERNORS TO THE COURT HIS FIRST CHOICE WAS GOV MARIO CUOMO OF NEW YORK WHO TURNED HIM DOWN THE PRESIDENT ALSO CONSIDERED FORMER SOUTH CAROLINA GOV RICHARD RILEY WHO IS NOW EDUCATION SECRETARY BUT MR RILEY IS SAID TO HAVE REFUSED THE JOB ONE OF MR CLINTON'S MODELS FOR REPLACING RETIRING JUSTICE WHITE WAS THE NOMINATION IN 1953 OF EARL WARREN WHO HAD BEEN GOVERNOR OF CALIFORNIA THE PRESIDENT HOPES THAT HIS APPOINTEE WILL HAVE ENOUGH POLITICAL SAVVY TO FORM A CONSENSUS AMONG THE NOW MOSTLY CONSERVATIVE JUSTICES HE ALSO IS HOPING FOR A MODERATE AS PART OF HIS CONTINUING EFFORT TO MOVE TOWARD THE POLITICAL MIDDLE 9306070077 930607 TECHNOLOGY & HEALTH WHO OFFICIAL TO SEEK 25 BILLION A YEAR FROM DEVELOPED WORLD FOR AIDS FUND BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL BERLIN AN OFFICIAL OF THE WORLD HEALTH ORGANIZATION WILL PROPOSE THAT DEVELOPED COUNTRIES INVEST A TOTAL OF 25 BILLION A YEAR IN AIDS PREVENTION IN THE DEVELOPING WORLD THE MOVE HE CONTENDS WOULD SPARE MILLIONS OF LIVES AND SAVE ABOUT 90 BILLION IN COSTS BY THE YEAR 2000 THIS IS A RETURN ANY COMPANY WOULD BE HAPPY TO ACHIEVE MICHAEL MERSON DIRECTOR OF THE WORLD HEALTH ORGANIZATION'S AIDS PROGRAM WILL ARGUE IN A SPEECH HERE TODAY AT THE OPENING SESSION OF THE NINTH INTERNATIONAL CONFERENCE ON ACQUIRED IMMUNE DEFICIENCY SYNDROME IN THE PAST YEAR ALONE HE SAID IN HIS REMARKS 500000 PEOPLE INFECTED BY HIV THE VIRUS THAT CAUSES AIDS HAVE GONE ON TO DEVELOP THE DISEASE SWELLING THE EPIDEMIC'S OFFICIAL TOLL TO 25 MILLION WORLDWIDE BY 2000 DR MERSON PREDICTS THOSE AIDS CASES WILL TRIPLE AND THE NUMBERS OF INFECTED PEOPLE NOW ESTIMATED AT 14 MILLION WILL GROW TO 40 MILLION BY CONTRAST JONATHAN MANN OF THE HARVARD UNIVERSITY AIDS INSTITUTE HAS PREDICTED 110 MILLION CASES OF HIV INFECTION BY 2000 EITHER WAY DR MERSON SAID IN AN INTERVIEW THAT HIS PREVENTION SCHEME IF FUNDED COULD CUT THE NEW HIV INFECTION RATE IN HALF AND AVERT INCALCULABLE SUFFERING DURING THIS DECADE WE CAN'T AFFORD TO NEGLECT THIS EPIDEMIC HE SAID JUST BECAUSE THE POWERFUL LOST INTEREST AND THE POWERLESS HAD NO CHOICE MORE THAN 12000 SCIENTISTS JOURNALISTS AND PEOPLE WITH AIDS POURED INTO THIS CITY OVER THE WEEKEND FOR MARATHON DEBATES AND ARGUMENTS PITTING SCIENTIFIC HOPE AGAINST THE GRIM AND GROWING PANDEMIC BATTLE FATIGUE IS ETCHED INTO MANY FACES AND TESTINESS WAS AUDIBLE DURING DEBATES THAT RAGED IN PRELIMINARY SESSIONS OF ALL THOSE DEBATES THE FIERCEST FIGHT IS OVER THE QUESTION OF HOW SOON TO BLAST HIV WITH ANTIVIRAL DRUGS IT IS A QUESTION TROUBLING THE FATE OF MANY THOUSANDS OF PATIENTS AS WELL AS THE FORTUNES OF WELLCOME PLC FOR YEARS US MEDICAL DOGMA HAS HELD THAT PATIENTS SHOULD BEGIN TAKING WELLCOME'S ANTIVIRAL DRUG AZT LONG BEFORE AIDS SYMPTOMS APPEAR INDEED AS SOON AS WHITE BLOOD CELLS OF THE IMMUNE SYSTEM DECLINE TO 500 OR HALF THE NORMAL LEVEL AT LEAST TWO STUDIES FROM THE NATIONAL INSTITUTES OF HEALTH BOLSTERED THE PRACTICE BUT LEADERS OF A CONTRARY EUROPEAN STUDY TOOK CENTER STAGE HERE YESTERDAY ASSERTING BENEFITS OF EARLY AZT ARE AT BEST LIMITED AND TRANSIENT OFFERING PATIENTS NO REAL SURVIVAL ADVANTAGE SELIGMANN OF THE UNIVERSITY OF PARIS AND HIS TEAM OF FRENCH AND BRITISH RESEARCHERS CONTEND THAT THE SOCALLED CONCORDE STUDY OF 1700 PATIENTS INVALIDATES THE AMERICAN STANDARD OF PRACTICE EMPLOYING EARLY AZT IN THE BALANCE THOUSANDS OF PATIENTS' TREATMENT PLANS ARE LEFT HANGING ALONG WITH MILLIONS OF DOLLARS IN POTENTIAL SALES REVENUE FOR WELLCOME DAVID BARRY WHO HAS HEADED WELLCOME'S AZT PROGRAM SINCE BEFORE THE DRUG'S 1987 APPROVAL ATTACKED WHAT HE CALLED DR SELIGMANN'S LEITMOTIF OF LIMITED AND TRANSIENT EFFECTS EVEN IN THE CONCORDE STUDY HE NOTED AZT MAINTAINED STRIKING RISES IN IMMUNE CELLS DR SELIGMANN COUNTERED SUCH CELLS ARE AN UNRELIABLE INDEX OF DRUG VALUE IN THE FACE OF SUCH CHALLENGES SOME FORMER CHAMPIONS OF EARLY TREATMENT HAVE AT LEAST TEMPORARILY YIELDED GROUND THE AMERICAN MEDICAL ASSOCIATION WHICH WAS TO HAVE PRESENTED ITS UPDATED GUIDE FOR AIDS DOCTORS HERE HAS DELAYED PUBLICATION PAUL VOLBERDING AN AIDS RESEARCHER AT SAN FRANCISCO GENERAL HOSPITAL WHO HEADS THE AMA COMMITTEE ON THE GUIDELINES SAID THAT FOLLOWING CONCORDE THE DRAFT DOCUMENT WILL BE REVISED BASED ON CONCLUSIONS FROM SUMMIT MEETINGS TO BE CONVENED AT NIH LATER THIS SUMMER CONCORDE'S CONCLUSIONS ALREADY HAVE BEEN ATTACKED AS OUTDATED BECAUSE THE STUDY KEPT PATIENTS ON AZT FOR THREE YEARS LONG PAST THE TIME EXPERTS COUNSEL SWITCHING THEM TO ALTERNATE DRUGS LIKE BRISTOLMYERS SQUIBB CO'S DDI OR ROCHE HOLDING LTD'S DDC FURTHER CONCORDE ALLOWED HUNDREDS OF PATIENTS ON PLACEBO TO SWITCH TO AZT DURING THE STUDY YET COUNTED THEIR RESULTS AS BELONGING TO THE CONTROL GROUP CRITICS SAY THIS COULD CLOUD CONCORDE'S REAL SIGNIFICANCE A CHARGE DR SELIGMANN HOTLY DENIED DIVERSE EXPERTS IN WHO THE US CENTERS FOR DISEASE CONTROL AND PREVENTION AND AIDS CLINICS POUNDED HOME THE THEME THAT THE EPIDEMICONCE THE PROVINCE OF GAY WHITE MALESIS CHANGING COURSE TO ATTACK MORE MINORITIES YOUTH AND WOMEN THE NEW FACE OF AIDS IS A 15 TO 19YEAROLD GIRL IN THAILAND SAID KAREN HEIN OF NEW YORK'S MONTEFIORE MEDICAL CENTER IT'S A PROFILE THAT HAS ONLY BEGUN TO HIT US SHORES SHE ADDED BUT THE FORECAST IS HARDLY HYPOTHETICAL WITH GAY MEN HAVING CHANGED THEIR RISKY BEHAVIOR MOST OF NEW HIV INFECTIONS ARE AMONG POOR AND MINORITY YOUTH ESPECIALLY ADOLESCENT GIRLS DR HEIN PRAISED THE EXAMPLE OF FINLAND WHERE THE GOVERNMENT MAILS EVERY 16YEAROLD A BROCHURE CONTAINING A CONDOM AND PICTURES OF TEENS ENGAGED IN A SAFER FORM OF INTIMACY WITHOUT PENETRATION OR AIDS RISK WHICH DR HEIN DUBBED OUTERCOURSE 9306070076 930607 EQUIPMENT SALES SOAR 23 MOUNTAIN VIEW CALIF A TRADE GROUP REPORTED THAT US SHIPMENTS OF EQUIPMENT USED TO MAKE SEMICONDUCTORS SURGED 23 IN APRIL REFLECTING THE BOOM IN DEMAND FOR PERSONAL COMPUTERS WORKSTATIONS TELECOMMUNICATIONS DEVICES AND OTHER PRODUCTS THAT USE MICROCHIPS APRIL SHIPMENTS CALCULATED ON A THREEMONTH ROLLING AVERAGE AMOUNTED TO 4147 MILLION COMPARED TO 3367 MILLION IN APRIL 1992 AND WERE UP 5 FROM MARCH NEW ORDERS ALSO WERE STRONG RISING 10 FROM MARCH TO 4804 MILLION THE EQUIPMENT MAKERS HAD AN APRIL BOOKTOBILL RATIO OF 116 COMPARED TO 110 IN MARCH 1993 THE RATIO MEANS THAT FOR EVERY 100 OF SHIPMENTS THE COMPANIES RECEIVED 116 OF ORDERS A RATIO OF MORE THAN 10 INDICATES GROWING INDUSTRY DEMAND THIS IS A CLEAR INDICATION THAT THE ENTIRE US SEMICONDUCTOR INDUSTRY IS RAMPING UP SAID WILLIAM H REED PRESIDENT OF THE TRADE GROUP SEMICONDUCTOR EQUIPMENT AND MATERIALS INTERNATIONAL THIS RECOVERY IS REAL AND OUR MEMBERS ARE BEGINNING TO ENJOY THE BENEFITS 9306070075 930607 BUSINESS BRIEF FOURTH FINANCIAL CORP ANOTHER ACQUISITION PLANNED IN EXPANSION INTO OKLAHOMA FOURTH FINANCIAL CORP WICHITA KAN CONTINUING AN AGGRESSIVE EXPANSION INTO OKLAHOMA SAID IT SIGNED A LETTER OF INTENT TO BUY WESTERN NATIONAL BANCORP TULSA OKLA FOR ABOUT 34 MILLION IN STOCK THE DEAL EXPECTED TO CLOSE IN THE FOURTH QUARTER MARKS THE THIRD PROPOSED ACQUISITION IN OKLAHOMA THIS YEAR FOR FOURTH FINANCIAL THE PARENT COMPANY OF BANK IV KANSAS AND BANK IV OKLAHOMA IN FEBRUARY THE BANK HOLDING COMPANY SAID IT INTENDED TO BUY COMMERCIAL LANDMARK CORP A FOURBANK HOLDING COMPANY IN NORTHEASTERN OKLAHOMA FOR AN UNDISCLOSED NUMBER OF COMMON SHARES AND LAST WEEK THE COMPANY ANNOUNCED AN AGREEMENT TO BUY PONCA BANCSHARES INC OF PONCA CITY OKLA TERMS FOR THAT TRANSACTION WEREN'T DISCLOSED ONCE THESE TRANSACTIONS AND THE LATEST DEAL WITH WESTERN NATIONAL ARE COMPLETED FOURTH FINANCIAL SAID IT WILL HAVE ASSETS OF MORE THAN 66 BILLION UP FROM ABOUT 58 BILLION TODAY 9306070074 930607 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR LABOR DEPARTMENT REPORTS ON MAY CONSUMER AND PRODUCER PRICES SHOULD SHOW THAT RECENT INFLATION FEARS ARE OVERDONE ECONOMISTS SAY THE PRODUCER PRICE INDEX TO BE RELEASED THIS WEEK PROBABLY WILL REVEAL A SCANT 01 OR 02 RISE IN MAY PRICES AT THE WHOLESALE LEVEL SAID JEFF THREDGOLD CHIEF ECONOMIST FOR ALBANY NYBASED KEYCORP RECENT JUMPS IN THE PRODUCER AND CONSUMER PRICE INDICES CAPPED BY A 06 RISE IN THE APRIL PRODUCER PRICE INDEX HEIGHTENED WORRIES THAT INFLATION WAS MAKING A COMEBACK AFTER REMAINING WELL UNDER CONTROL IN 1992 BUT THE PRICE INCREASES AREN'T SUSTAINABLE MR THREDGOLD SAID THERE IS STILL ENOUGH SLACK IN THE GLOBAL AND DOMESTIC ECONOMIES TO CONSTRAIN ANY INCREASES IN DOMESTIC INFLATION PRESSURES FOR THE BALANCE OF THE YEAR HE ADDED THE CONSUMER PRICE REPORT WILL COME OUT NEXT WEEK BOTH PRICE REPORTS WILL COME UNDER CLOSE SCRUTINY BY THE INFLATION HAWKS AT FEDERAL RESERVE BOARD AT A RECENT MEETING THE FED'S POLICYMAKING ARM REPORTEDLY VOTED TO LEAN TOWARD TIGHTER MONETARY POLICY IF INFLATION CONTINUED TO ACCELERATE 9306070073 930607 CHEFS TOIL TO MAKE YOUR MOUTH WATER AS YOUR EARS POP AIRLINE MEALS LOSE SOME FLAVOR IN FLIGHT BUT THEY BRING AN AIR FRANCE COOK ACCLAIM BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL PARIS CHEF GUY LEGAY'S LOBSTER AND LAMB DISHES AT THE HOTEL RITZ ALLOW HIM TO BOAST TWO OUT OF A POSSIBLE THREE STARS FROM THE PRESTIGIOUS MICHELIN GUIDE BUT AS THE TALL THICKSET MR LEGAY STRIDES TO THE PODIUM AT THE HOTEL MERIDIEN ETOILE HE STAKES HIS CLAIM TO A DIFFERENT PRIZE TOWERING OVER AIR FRANCE CHAIRMAN BERNARD ATTALI MR LEGAY SOBERLY ACCEPTS THE FIRST GASTRONOMY WINGS TROPHY AS FRANCE'S TOP AIRLINE CHEF HIS ENTRY FOR THE CONTEST WOULD MAKE ANY GOURMET'S MOUTH WATER START WITH FOIE GRAS MARINATED FOR TWO DAYS IN A WINE AND HERB SAUCE THEN MOVE ON TO ROCK LOBSTER WITH SCALLOPED ARTICHOKES NEXT UP IS A NICE SEA BASS ROASTED WITH FENNEL AND OLIVE OIL AND FINALLY A SLICE OF CHOCOLATE CAKE THIS IS AIRLINE FOOD FOR MANY TRAVELERS INFLIGHT MEALS MEAN TASTEFREE SALMON AND CARDBOARD CHICKEN SERVED IN TINY PLASTIC TRAYS ASK PEOPLE HOW THEIR FLIGHT WAS AND PROVIDED THEY DIDN'T LOSE LUGGAGE OR MISS A CONNECTION THEY'LL START TALKING ABOUT THE FOOD WITH THAT IN MIND AIR FRANCE LAUNCHED THE GASTRONOMY WINGS CONTEST AND RECEIVED ENTRIES FROM 20 CHEFS BEARING A TOTAL OF 33 MICHELIN STARS FIVE CATERING SPECIALISTS ALSO ENTERED THE COMPETITION THE FIVECOURSE LUNCH FOR THE CEREMONY WHICH ALSO SERVED TO ANNOUNCE THE AIRLINE'S NEW SELECTION OF WINES REQUIRED TWO DAYS AND SIX CHEFS TO PREPARE THE PRESENTATION OF THE WINE LIST IS MUCH MORE INTERESTING THAN THE FINANCIAL RESULTS SAYS CHRISTIAN BOIREAU AIR FRANCE'S EXECUTIVE VICE PRESIDENT FOR SALES FINISHING UP HIS STRAWBERRY TART HE MIGHT WELL ADD THAT MEALS EARN MONEY FOR THE UNPROFITABLE AIRLINE IN 1992 CATERING UNIT SERVAIR POSTED A PROFIT OF 70 MILLION FRANCS 13 MILLION EVEN AS AIR FRANCE'S LOSS WIDENED TO 33 BILLION FRANCS AIR FRANCE ISN'T ALONE IN CALLING IN THE BIG SHOTS SAUDI ARABIAN AIRLINES CLAIMS ALL OF ITS MEALS ARE CREATED BY WORLDCLASS CHEFS BRITISH AIRWAYS RECENTLY TURNED TO ANTON EDELMANN OF THE SAVOY AND WILLI ELSENER OF THE DORCHESTER TO SPRUCE UP ITS CONCORDE MENUS SO WHY DO SO MANY PEOPLE COMPLAIN ABOUT AIRLINE FOOD THE PEOPLE WHO MAKE THE FOOD ON BOARD AREN'T SPECIALISTS SAYS JACQUES SENECHAL CHEF AT THE HOTEL NIKKO IN PARIS THERE'S NO RELATIONSHIP WITH THE CLIENT THE PROBLEM IS THAT THEY REHEAT FOOD IN THE AIRPLANE AND SOMETIMES THEY FORGET TO TAKE IT OUT OF THE OVEN OFFERS CHRISTIAN DELOUVRIER HEAD CHEF AT LES CELEBRITES IN NEW YORK AND A FORMER AIR FRANCE CHEF A TYPICAL AIRLINE MEAL IS COOKED 12 TO 14 HOURS AHEAD OF TIME AND THEN PLACED FOR 10 MINUTES IN FREEZERS AT MINUS 45 DEGREES THIS DRIES OUT THE FOOD CHEFS SAY THEN THERE IS THE ALTITUDE FLYING AT 30000 FEET DAMPS PEOPLE'S TASTE BUDS SO FOOD AND WINE HAVE TO HAVE A STRONGER FLAVOR FROM THE START BUT THE BIGGEST PROBLEM IS MONEY FOR EXAMPLE SERVAIR HAS TO FLY IN 600 LOBSTERS A DAY FROM CANADA THESE PRODUCTS AREN'T VERY CHEAP SAYS JEAN MINE CHARGED WITH INFLIGHT QUALITY FOR AIR FRANCE AIR FRANCE SPENDS A MEAGER 10 FRANCS ON INGREDIENTS FOR EACH OF ITS CHARTER FLIGHT MEALS COMPANY OFFICIALS WON'T SAY WHAT THEY SPEND ON A CONCORDE MEAL BUT THEY CLAIM THAT THE SAME MENU WOULD COST ABOUT 800 FRANCS IN A PARIS RESTAURANT THE DAY AFTER THE BIG AWARD CEREMONY SERVAIR AND AIR FRANCE OFFICIALS GATHER AT ORLY AIRPORT TO PLAN MENUS FOR JULY AND AUGUST THE MEETING MOVES ALONG QUICKLY AS THE SEVEN PURCHASERS CHEFS AND QUALITY CONTROLLERS SAMPLE AND AGREE ON ALL THE MENUS FROM CONCORDE TO CHARTER CLASS ONLY ONE NEW DISH IS APPROVED MUSHROOMS STUFFED WITH TRUFFLES AND GOOSE LIVER FOR FIRST CLASS ACROSS TOWN AT SERVAIR'S MAIN FACILITY AT CHARLES DE GAULLE AIRPORT THE IMPORTANCE OF PREPARATION TIME BECOMES CLEAR COOKING THOUSANDS OF MEALS ON HUNDREDS OF FLIGHTS A DAY FOR SEVERAL DIFFERENT AIRLINES REQUIRES CAREFUL PLANNING WE HAVE A PROBLEM SAYS PHILIPPE CONTAN SERVAIR'S HEAD OF PURCHASING AS HE SURVEYS THE DAILY DELIVERY OF 15 TONS OF FRESH FOOD IT'S THE STRAWBERRIES THEY'RE TOO DARK THE DELIVERY MAN IS HASTILY DISPATCHED AND TOLD TO RETURN WITH A FRESH 220 POUNDS OF STRAWBERRIES LATER IN THE MORNING MEANWHILE THE FIRST OF THREE SHIFTS OF COOKS ARE BUSY GRILLING CHICKEN BREASTS FOR AEROLINEAS ARGENTINAS AND KUWAIT AIRWAYS AT THE SAME TIME 300 LOBSTERS ARE BOILING IN GIANT VATS NEARBY TEAMS OF WORKERS PREPARE 12000 SANDWICHES IN A ROOM COOLED TO 54 DEGREES ACROSS THE HALL WORKERS PUT THE FINISHING TOUCHES ON A LOBSTER SALAD FOR AIR FRANCE BUSINESS CLASS PREPARED MEALS ARE THEN PUT ONTO THE PLASTIC TRAYS THAT MOVE DOWN CONVEYOR BELTS IN ASSEMBLYLINE FASHION UPSTAIRS THREE CHEFS TINKER WITH RECIPES AND COOKING TECHNIQUES IN A SEARCH OF THE PERFECT INFLIGHT MEAL ONE PROMISING DEVELOPMENT IS VACUUM COOKING SEALING THE FOOD IN PLASTIC BAGS AND COOKING IT IN WATER FOR AN HOUR THE PROCESS KEEPS MORE FLAVOR IN THE FOOD SUCH INNOVATION CAUSES EVEN FRANCE'S TOP CHEFS TO SAY AIRLINE FOOD ISN'T AS BAD AS MANY TRAVELERS CLAIM STILL THERE'S ROOM FOR IMPROVEMENT MR DELOUVRIER OF LES CELEBRITES FOR EXAMPLE SAYS AIRLINES SHOULD ABANDON ATTEMPTS TO SERVE REHEATED EGGS ON MORNING FLIGHTS 9306070072 930607 SCIENTISTS FIND OTHER CLUES RELATED TO LOSS OF MEMORY ALZHEIMER'S RESEARCHERS HAVE FOUND SEVERAL OTHER CLUES TO THE DISEASE LATELY IN ADDITION TO THE DUKE FINDINGS LINKING IT TO A CHOLESTEROLCARRYING PROTEIN FOR YEARS SCIENTISTS HAVE BELIEVED THAT DEPLETED SUPPLIES OF A BRAIN CHEMICAL CALLED ACETYLCHOLINE CAUSE MEMORY LOSS THEN IN OCTOBER MASSACHUSETTS INSTITUTE OF TECHNOLOGY RESEARCHERS REPORTED THAT REDUCED ACETYLCHOLINE LEVELS MAY INCREASE PRODUCTION OF BETA AMYLOID THE SUBSTANCE THAT CLUMPS UP IN ALZHEIMER'S PATIENTS' BRAINS OUR FINDING SUGGESTS THAT DRUGS THAT MIMIC ONE PARTICULAR ASPECT OF ACETYLCHOLINE'S ACTIVITY MAY LIMIT AMYLOID BUILDUP SAYS MIT'S RICHARD WURTMAN HE AND OTHERS ARE SEEKING SUCH DRUGS HOW MIGHT BETA AMYLOID HARM BRAIN CELLS IN JANUARY OTHER RESEARCHERS SHOWED HOW CLUMPS OF AMYLOID CAN OPEN HOLES IN BRAINCELL MEMBRANES ALLOWING EXCESSIVE DEADLY LEVELS OF CALCIUM TO ENTER THE CELL WE THINK OUR RESEARCH EXPLAINS WHY AMYLOID BUILDUP IS SO DANGEROUS SAYS THE LEAD RESEARCHER HARVEY POLLARD OF THE NATIONAL INSTITUTES OF HEALTH IN BETHESDA MD THE NIH IS TESTING DRUGS TO BLOCK THE ENTRY OF EXCESS CALCIUM MEANWHILE THE FIRST APPROVED ALZHEIMER'S DRUG WILL SOON GO ON SALE COGNEX TO BE MARKETED BY WARNERLAMBERT CO'S PARKEDAVIS DIVISION MODESTLY INCREASES THE SUPPLY OF ACETYLCHOLINE BETWEEN BRAIN CELLS WHILE STUDIES SHOW THAT COGNEX CAN SLOW THE PROGRESS OF ALZHEIMER'S ONLY BRIEFLY AND FOR ABOUT ONLY 40 OF PATIENTS DOCTORS ARE EXPECTED TO PRESCRIBE IT WIDELY SEVERAL OTHER DRUGS WITH SUCH LIMITED BENEFITS ARE BEING TESTED SEE RELATED STORY CLUE TO A KILLER ALZHEIMER'S IS LINKED TO THE WAY THE BLOOD TRANSPORTS CHOLESTEROL ONE OF SEVERAL NEW FINDINGS ON DISEASE MAY EXPLAIN PLAQUE IN VICTIMS' BRAINS PINPOINTING A CRITICAL GENE WSJ JUNE 7 1993 9306070070 930607 BOND INVESTORS BRACE FOR HIGHER INTEREST RATES ABREAST OF THE MARKET STOCKS MAY RISE FURTHER DESPITE ALTERED CLIMATE BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL ONE OF THE STOCK MARKET'S BEST FRIENDS LOW SHORTTERM INTEREST RATES ISN'T QUITE SO CHUMMY ANYMORE FALLING INTEREST RATES HAVE BEEN THE ENGINE BEHIND THE BULL MARKET FOR THE PAST 2 1/2 YEARS NOW WITH SHORTTERM RATES INCHING UP MANY INVESTORS ARE TROUBLED BY THE PROSPECT OF A CHANGE IN THE TREND BUT WHILE ANALYSTS SAY RISING SHORTTERM RATES EVENTUALLY WILL PRECIPITATE A LONGAWAITED SHARP CORRECTION IN STOCK PRICES THEY SAY THE MARKET IN TIME WILL ADJUST TO THE NEW HIGHERRATE ENVIRONMENT AND RESUME ITS CLIMB EVEN AS SHORTTERM RATES HAVE MOVED HIGHER STOCK PRICES ALSO HAVE CLIMBED WITH THE DOW JONES INDUSTRIAL AVERAGE REACHING HIGHS THAT'S NO SURPRISE TO ROBERT J BARBERA CHIEF ECONOMIST AT LEHMAN BROTHERS HISTORICALLY MR BARBERA NOTES STOCK PRICES KEEP CLIMBING FOR A WHILE EVEN AFTER SHORTTERM RATES START RISING THE GOOD NEWS IS THERE'S A PERIOD IN WHICH POSITIVE EARNINGS SURPRISES OVERPOWER A SHRINKING RATIO OF STOCK PRICES TO PERSHARE EARNINGS THAT USUALLY IS ASSOCIATED WITH RISING RATES HE SAYS THE BAD NEWS IS WE'VE BEEN IN THAT PERIOD FOR SEVEN MONTHS NOW INTEREST RATES ON THREEMONTH TREASURY BILLS FELL TO A LOW OF 269 IN OCTOBER AND THIS SPRING HAVE EDGED BACK UP TO 311 MR BARBERA WARNS THE BREAKING POINT IS APPROACHING STOCK PRICES AND SHORTTERM RATES CAN RISE TOGETHER HE SAYS ONLY UNTIL THE SHORTRATE RISE BECOMES PERNICIOUS HE PREDICTS THE FEDERAL RESERVE WILL BOOST THE FEDERAL FUNDS RATE TWICE IN 1/4 PERCENTAGEPOINT INCREMENTS THIS YEAR BRINGING THE RATE TO 35 BY YEAR'S END THE FED WILL TAKE THIS ACTION IN RESPONSE TO THE ECONOMY'S STRENGTH AND FURTHER SIGNS OF RISING INFLATION HE SAYS SOMEWHERE BETWEEN THE FIRST AND SECOND TIGHTENING THE STOCK MARKET WILL BEGIN ITS SHORTRATERISE CORRECTION OF 10 TO 15 MR BARBERA ASSERTS PETER CANELO CHIEF INVESTMENT STRATEGIST AT NATWEST SECURITIES SAYS INVESTORS SOMETIMES USE TWO RULES OF THUMB TO DETERMINE WHEN SHORTTERM RATES ARE REACHING LEVELS HARMFUL TO STOCK PRICES THE FIRST SAYS WHEN RATES HAVE CLIMBED 20 ABOVE THEIR LOW STOCK PRICES ARE HEADED FOR A TUMBLE UNDER THIS RULE SHORTTERM RATES WOULD HAVE TO REACH ABOUT 320 TO SIGNAL TROUBLE THE SECOND RULE SAYS THAT INVESTORS SHOULD SELL STOCKS WHEN SUCH RATES CLIMB ABOVE THEIR YEAREARLIER LEVEL EVEN BY THIS MEASURE MR CANELO SAYS INTEREST RATES AREN'T YET GIVING A SELL SIGNAL AT THIS TIME LAST YEAR SHORTTERM RATES WERE AT ABOUT 375 I USUALLY LOOK AT THE YEARTOYEAR COMPARISON MR CANELO SAYS THAT SHOWS THAT RATES ARE STILL LOW TO ASSESS THE POTENTIAL IMPACT ON STOCK PRICES MR CANELO SAYS IT IS IMPORTANT TO ANALYZE WHY RATES ARE CLIMBING IF THE RISE IS BECAUSE BUSINESS IS GOOD AND DEMAND FOR CREDIT IS GROWING THAT MAY NOT BE SO BAD HE SAYS UNDER THOSE CONDITIONS IT'S CONCEIVABLE RATES COULD RISE MORE WITHOUT CAUSING TOO MUCH TROUBLE BUT MR CANELO ARGUES IT IS WORRISOME IF RATES CLIMB AS A RESULT OF INFLATIONARY PRESSURES AND A WEAKENING DOLLAR THAT'S BECAUSE THOSE CONDITIONS COULD PROMPT AN EARLY TIGHTENING BY THE FED LEADING TO SLOW ECONOMIC GROWTH COMBINED WITH HIGH UNEMPLOYMENT AND INFLATION KNOWN AS STAGFLATION MR CANELO NOTES THAT A FED INCREASE IN SHORTTERM RATES WOULD BE WELCOME AS LONG AS IT FOLLOWS THE MARKET AS LONG AS ANY FED RATE INCREASES PARALLEL WHAT HAPPENS IN THE FREE MARKET IT DOESN'T MEAN THE FED IS TIGHTENING IT'S JUST CONFIRMING THE MARKET MR CANELO SAYS IF THE FED FOLLOWS THE MARKET IT DOESN'T HURT STOCKS THAT MUCH IT'S WHEN THE FED TRIES TO MOVE AHEAD OF THE MARKET TO BOOST THE CURRENCY OR SLOW INFLATION THAT STOCKS GET REALLY HURT MR CANELO ADDS THAT STRONG EARNINGS GROWTH IS IMPORTANT TO INSULATING STOCK PRICES AGAINST THE ILL EFFECTS OF RISING SHORTTERM INTEREST RATES SO ANY EARNINGS DISAPPOINTMENTS COULD BATTER STOCKS HE ADVISES INVESTORS TO CAREFULLY SELECT STOCKS OF COMPANIES WITH PROSPECTS FOR GOOD PROFIT GROWTH THE ONLY DEFENSE AGAINST HIGHER RATES IS EARNINGSDRIVEN COMPANIES HE SAYS YOU WANT TO AVOID INTERESTSENSITIVE STOCKS SUCH AS FINANCIALS AND UTILITIES MR CANELO PREDICTS THE INDUSTRIAL AVERAGE WILL CLIMB A LITTLE HIGHER PEAKING AT 3600 BEFORE A CORRECTION OCCURS RIGHT NOW THE MARKET IS IN THE PROCESS OF TOPPING OUT AS RATES APPROACH THE TRIGGER LEVEL OF 20 ABOVE THEIR LOW MR CANELO SAYS JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ & CO EXPECTS RISING SHORTTERM RATES TO RATTLE STOCKS FOR A WHILE BUT SEES STOCK PRICES RESUMING THEIR UPWARD CLIMB AFTER A CORRECTION ONCE THE STOCK MARKET GETS USED TO RISING RATES IT STARTS GOING UP AGAIN MR MCALINDEN SAYS BUT IT TAKES SIX TO NINE MONTHS OF A PAINFUL CORRECTION HE ARGUES THAT DURING THE LAST THREE DEMOCRATIC ADMINISTRATIONS OF CARTER JOHNSON AND KENNEDY STOCK PRICES HAVE CLIMBED ALONG WITH SHORTTERM INTEREST RATES BUT IN EACH CASE IN THE FIRST OR SECOND YEAR THERE WAS A BIG CORRECTION OF 15 TO 20 MR MCALINDEN SAYS THE ONSET OF THE CORRECTION SEEMS TO BE ASSOCIATED WITH THE BEGINNING OF THE RISE IN RATES HE BELIEVES RATES WILL CONTINUE TO RISE BECAUSE OF INFLATIONARY PRESSURES BROUGHT ABOUT BY EXCESS MONETARY EXPANSION OVER THE PAST TWO YEARS MR MCALINDEN USES M1 A MEASURE THAT INCLUDES CURRENCY IN CIRCULATION AND DEMAND DEPOSITS IN BANKS BUT MR MCALINDEN EXPECTS THE FED TO REFRAIN FROM AGGRESSIVE ACTION NUDGING RATES HIGHER FOR A TIME ONLY IN RESPONSE TO TRENDS ALREADY IN THE MARKET THAT WILL BE THE CONSEQUENCE OF AN ADMINISTRATION IN THE WHITE HOUSE THAT LEANS ON THE FED TO BE MORE ACCOMMODATIVE MR MCALINDEN SAYS THE DEMOCRATIC BIAS TOWARD EASY MONEY WILL PERSIST FOR THE WHOLE FOURYEAR TERM BUT AS INFLATION HEATS UP MR MCALINDEN FORESEES A CONFRONTATION BETWEEN THE FED AND THE WHITE HOUSE OVER RATES I SEE A CRISIS SOMETIME NEXT SPRING WHEN THE FED WILL STAND UP AND SAY INFLATION HAS GONE TOO FAR AND IT'S TIME TO STEP IN HE SAYS THAT WILL BE GREETED BY A VIOLENT REACTION FROM THE ADMINISTRATION THAT COULD CULMINATE IN THE RESIGNATION OF FED CHAIRMAN ALAN GREENSPAN EVEN SO MR MCALINDEN PREDICTS AN ANNUAL TOTAL RETURN OF 6 ON THE S&P 500 DURING THE CLINTON ADMINISTRATION'S FOURYEAR TERM DESPITE A TREND OF HIGHER INFLATION AND HIGHER SHORTTERM RATES IN THE LONG RUN STOCKS ARE A HEDGE AGAINST INFLATION HE SAYS THE WHOLE CONCEPT OF STOCKS IS THAT COMPANIES PASS THROUGH RISING INFLATION AND EARNINGS WILL GROW STOCKS ENDED MIXED AFTER INTEREST RATES SHOT UP AMID SIGNS THAT THE EMPLOYMENT PICTURE IS BRIGHTENING THE DOW JONES INDUSTRIAL AVERAGE EDGED UP 027 POINT TO 354514 IN MODERATELY HEAVY TRADING STANDARD & POOR'S 500STOCK INDEX TUMBLED 243 POINTS TO 45006 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX FELL 137 TO 24822 VOLUME ON THE BIG BOARD TOTALED 224240000 SHARES COMPARED WITH 279900000 SHARES THURSDAY DECLINING ISSUES OUTNUMBERED ADVANCERS 1199 TO 744 THE INDUSTRIAL AVERAGE PLUNGED EARLY IN THE DAY AFTER THE LABOR DEPARTMENT REPORTED THAT THE US CIVILIAN UNEMPLOYMENT RATE FELL TO 69 IN MAY FROM 7 IN APRIL NONFARM PAYROLLS IN MAY JUMPED BY A SURPRISINGLY LARGE 209000 THE GOOD ECONOMIC NEWS SPARKED A SELLOFF IN BONDS WHICH GENERALLY TEND TO WEAKEN IN THE FACE OF A PICKUP IN BUSINESS STOCKS ALSO FELL PRESSURED BY THE RISE IN INTEREST RATES FOR THE WEEK THE INDUSTRIAL AVERAGE GAINED 05 WHILE THE S&P 500 AND THE NYSE COMPOSITE INDEX WERE FRACTIONALLY LOWER SURGING INTEREST RATES SENT BANK STOCKS REELING BANK OF NEW YORK SLID 1 3/8 TO 54 3/8 CITICORP EASED 5/8 TO 27 3/4 FIRST CHICAGO FELL 1 1/2 TO 37 AND SIGNET BANKING DROPPED 1 3/4 TO 51 1/4 ALLSTATE WAS THE SECONDMOST ACTIVE STOCK ON THE BIG BOARD SLIPPING 3/4 TO 28 5/8 LATE WEDNESDAY THE INSURANCE CONCERN SOLD 785 MILLION SHARES AT 27 APIECE IN THE LARGEST INITIAL PUBLIC OFFERING BY A US COMPANY ANDREA ELECTRONICS SURGED 12 3/4 OR 515 TO 37 1/2 ON THE AMERICAN STOCK EXCHANGE THE STOCK HAS BEEN ON A ROLLERCOASTER RIDE SINCE THE LONG ISLAND CITY NY COMPANY ANNOUNCED A 400 STOCK DIVIDEND LAST MONTH A COMPANY SPOKESMAN DIDN'T RETURN TELEPHONE CALLS SEEKING COMMENT ON THE ACTIVITY MERRYGOROUND ENTERPRISES SLUMPED 1 TO 10 3/4 DEAN WITTER REYNOLDS LOWERED ITS INVESTMENT RATING ON THE COMPANY TO NEUTRAL FROM BUY AND REMOVED THE COMPANY FROM ITS RECOMMENDED LIST KOHLS JUMPED 1 5/8 TO 35 1/4 THE COMPANY REPORTED FIRSTQUARTER EARNINGS LAST WEEK OF 20 CENTS A SHARE COMPARED WITH 11 CENTS A SHARE A YEAR EARLIER BALLY MANUFACTURING CONTINUED TO ADVANCE GAINING 1 1/8 TO 11 1/2 THE COMPANY WON APPROVAL FROM STATE REGULATORS TO OPEN TWO DOCKSIDE CASINO OPERATIONS IN MISSISSIPPI DAVID PETTIT CONTRIBUTED TO THIS ARTICLE SEE RELATED STORY CREDIT MARKETS DATA ON JOBS HOUSING IGNITE INFLATION FEARS WSJ JUNE 7 1993 9306070069 930607 INTEL WINS COURT RULING THAT VOIDS RIVAL'S RIGHT TO MANUFACTURE 386 CHIP BY G CHRISTIAN HILL STAFF REPORTER OF THE WALL STREET JOURNAL INTEL CORP ALREADY REAPING ENORMOUS PROFITS FROM ITS NEARMONOPOLY CONTROL OF THE PERSONALCOMPUTER MICROPROCESSOR MARKET NOW HAS A NEW WEAPON TO USE AGAINST ITS MAJOR COMPETITOR ADVANCED MICRO DEVICES INC LATE FRIDAY THE CALIFORNIA COURT OF APPEALS GUTTED A FEBRUARY 1992 ARBITRATION AWARD THAT GAVE ADVANCED MICRO THE RIGHTS TO MANUFACTURE INTEL'S 386 MICROPROCESSOR WHICH FUNCTIONS AS THE BRAINS OF MILLIONS OF COMPUTERS ADVANCED MICRO HAS BEEN SELLING 386 CHIPS SINCE 1991 AND IS SHIPPING ABOUT THREE MILLION OF THEM A QUARTER FORCING INTEL TO SHARPLY LOWER PRICES BUT THE APPELLATE COURT SAID FRIDAY THAT THE ARBITRATOR EXCEEDED HIS AUTHORITY IN GIVING ADVANCED MICRO THE RIGHT TO SELL THE 386 CHIP IT ORDERED AN AWARD THAT LEFT ADVANCED MICRO WITH 1 OF DAMAGES AS A RESULT INTEL IS FREE TO PRESS A FEDERAL CASE PENDING SINCE 1991 ALLEGING THAT ADVANCED MICRO INFRINGED THREE OF INTEL'S 386 COPYRIGHTS INTEL'S GENERAL COUNSEL THOMAS DUNLAP SAYS DAMAGES IN THE CASE COULD BE TWO TO THREE TIMES THE 600 MILLION DAMAGE ESTIMATE INTEL MADE IN 1991 THOMAS THORNHILL AN ANALYST FOR MONTGOMERY SECURITIES SAID SUCH AN ESTIMATE ISN'T OUTLANDISH HE CALCULATES THAT INTEL'S LOST PROFITS FROM ADVANCED MICRO'S 386 COMPETITION AMOUNTED TO NEARLY 1 BILLION THROUGH THE END OF 1992 YOU'RE GETTING TO AN AMOUNT BIGGER THAN ANY CHECK AMD CAN WRITE MR THORNHILL SAID ADVANCED MICRO HAS BEEN ARGUING SINCE 1987 THAT IT HAS THE RIGHT TO MAKE 386 CHIPS AND INTEL'S NEXTGENERATION 486 MICROPROCESSOR UNDER A 1982 TECHNOLOGYSHARING AGREEMENT THAT IT ALLEGES INTEL LATER BREACHED EARLY LAST YEAR AN ARBITRATOR CONCLUDED THAT UNDER THE AGREEMENT ADVANCED MICRO HADN'T EARNED THE RIGHTS TO THE 386 BUT IN AN EXTRAORDINARY RULING HE SAID HE WAS NONETHELESS GIVING ADVANCED MICRO THE RIGHTS BECAUSE INTEL HAD SHOWN BAD FAITH IN BARGAINING OVER THE ISSUE THE COURT OF APPEALS REVERSED THIS MEASURE FRIDAY SAYING IT EXCEEDED THE ARBITRATOR'S AUTHORITY ADVANCED MICRO BASED IN SUNNYVALE CALIF SAID SATURDAY THAT IT IS ASKING THE APPELLATE COURT TO RECONSIDER ITS DECISION AND IF THAT MOVE FAILS WILL IMMEDIATELY APPEAL TO THE STATE SUPREME COURT IN A STATEMENT WJ SANDERS III ADVANCED MICRO'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THIS REVERSAL WILL NOT DETER AMD FROM CONTINUING TO COMPETE IN THE 386 MICROPROCESSOR MARKET HE ASSERTED THAT ADVANCED MICRO HAD OTHER LEGAL PROTECTIONS AGAINST INTEL'S DAMAGE CLAIMS AND ADVANCED MICRO'S GENERAL COUNSEL THOMAS ARMSTRONG SAID HE IS CONFIDENT THE COURT'S RULING WON'T STAND BUT MR THORNHILL THE MONTGOMERY SECURITIES ANALYST SAID THAT ADVANCED MICRO'S CHANCES OF GETTING THE APPELLATE COURT DECISION REVERSED ARE REALLY VERY SLIM AND THAT THE PROBABLE OUTCOME IS THAT AMD WILL LOSE THE FEDERAL CASE AS WELL HE SAID THE STATE LAW ON THE SCOPE OF ARBITRATION AWARDS APPEARS WELLSETTLED HE SAID THAT INTEL HAS ALREADY WON AN UNRELATED FEDERAL COURT CASE AFFIRMING THAT ADVANCED MICRO INFRINGED THE COPYRIGHT FOR OTHER INTEL CHIPS' MICROCODE SIMILAR TO THE MICROCODE USED IN THE 386 A JURY VERDICT IN THAT SEPARATE CASE PRECLUDED ADVANCED MICRO FROM SELLING A CLONE OF INTEL'S BESTSELLING 486 CHIP BUT IN APRIL A JUDGE SET ASIDE THE VERDICT AND ORDERED A NEW TRIAL ALLEGING THAT INTEL HAD SUPPRESSED EVIDENCE ADVANCED MICRO HAS BEEN SELLING 486 CLONES FOR TWO MONTHS AND COULD BE FORCED TO PAY DAMAGES IF INTEL PREVAILS IN THE SECOND TRIAL MR DUNLAP INTEL'S GENERAL COUNSEL SAID THE DATE OF THE SECOND TRIAL WON'T BE KNOWN UNTIL MORE HEARINGS ARE HELD HE SAID INTEL WOULD PRESS TO BEGIN THE TRIAL IN THE OTHER FEDERAL CASE ALLEGING ADVANCED MICRO VIOLATED INTEL'S 386 COPYRIGHTS EVEN IF ADVANCED MICRO LOSES THESE CASES ANY DAMAGE AWARDS MIGHT BE SETTLED FOR LESSER AMOUNTS MAINLY TO END LITIGATION THAT COULD DRAG ON FOR YEARS BUT ADVANCED MICRO CAN ILL AFFORD TO PAY ANY SIGNIFICANT DAMAGES IT HAS ABOUT 397 MILLION OF CASH BUT NEEDS TO INVEST HEAVILY IN NEW CHIP FABRICATION PLANTS TO COMPETE WITH INTEL MOREOVER ADVANCED MICRO'S CLONING OF THE 386 HAS BEEN ESSENTIAL TO THE COMPANY'S REVIVAL IT REPORTED ROBUST PROFITS OF 245 MILLION OR 257 A SHARE IN FISCAL 1992 COMPARED WITH 145 MILLION OR 153 A SHARE IN 1991 AND A LOSS OF 536 MILLION OR 78 CENTS A SHARE IN 1990 INTEL ON THE OTHER HAND HAS THE HIGHEST NET PROFIT MARGIN OF ANY COMPANY OF ITS SIZE IN THE US FOR THE FIRST QUARTER THE SANTA CLARA CALIF CONCERN REPORTED NET INCOME OF 548 MILLION OR 248 A SHARE A RETURN OF 27 ON REVENUE OF 202 BILLION SOME ANALYSTS EXPECT IT TO TAKE IN 3 BILLION NEXT YEAR THE LATEST COURT DECISION BECAME KNOWN AFTER CLOSE OF TRADING FRIDAY ADVANCED MICRO'S SHARES CLOSED AT 28 A SHARE DOWN 50 CENTS IN TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE BECAUSE OF ITS SUCCESS WITH THE 386 ITS STOCK IS TRADING AT MORE THAN THREE TIMES ITS LEVELS A YEAR AGO INTEL'S STOCK CLOSED FRIDAY AT 11275 A SHARE DOWN 1125 9306070068 930607 BUSINESS BRIEF NEW YORK TIMES CO HIGHER PERSHARE EARNINGS EXPECTED FOR 2ND QUARTER NEW YORK TIMES CO ESTIMATED THAT ITS SECONDQUARTER EARNINGS WILL BE IN THE RANGE OF 23 TO 27 CENTS A SHARE OR HIGHER THAN LAST YEAR WHEN THE COMPANY TOOK AN 11 MILLION PRETAX CHARGE FOR THE 1992 SECOND QUARTER THE COMPANY POSTED NET INCOME OF 152 MILLION OR 19 CENTS A SHARE WHICH INCLUDED THE CHARGE FROM LABOR DISRUPTION COSTS SECONDQUARTER REVENUE IN 1992 WAS 448 MILLION IN A NEWS RELEASE THE MEDIA PUBLISHING CONCERN SAID IT EXPECTS SECONDQUARTER OPERATING PROFIT FOR ITS NEWSPAPER GROUP TO BE LOWER COMPARED WITH A YEAR AGO DUE TO THE INCLUSION OF ABOUT 5 MILLION OF INCREMENTAL DEPRECIATION RELATED TO THE OPERATION OF A NEW PRODUCTION AND DISTRIBUTION FACILITY IN EDISON NJ THE COMPANY'S PRELIMINARY DATA FOR MAY INDICATE ADVERTISING LINAGE AT THE NEW YORK TIMES IS ROUGHLY EQUAL TO A YEAR AGO BUT ADVERTISING INCHES AT THE COMPANY'S REGIONAL NEWSPAPERS IS EXPECTED TO BE OFF BY 2 FROM MAY 1992 THE COMPANY SAID IT EXPECTS OPERATING PROFIT FROM ITS MAGAZINE GROUP TO BE SOMEWHAT LOWER THAN 1992 AS A RESULT OF SOFTNESS IN THE PACKAGED GOODS ADVERTISING CATEGORY IN THE WOMEN'S SERVICE FIELD 9306070067 930607 HEALTH CARE' STIRS UNPLEASANT MEMORIES CAPITOL HILL SADLY RECALLS THE CATASTROPHIC CARE ACT BY MARY AGNES CAREY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SEN JAY ROCKEFELLER CALLS IT ONE OF THE GREATEST BILLS THIS CONGRESS EVER PASSED REP DAN ROSTENKOWSKI WOULD PROBABLY LIKE TO FORGET IT EVER HAPPENED AS CAPITOL HILL EAGERLY AWAITS PRESIDENT CLINTON'S PROPOSALS ON HEALTHCARE OVERHAUL LAWMAKERS AND ADMINISTRATION OFFICIALS CAN'T HELP BUT REFLECT ON THE FEDERAL GOVERNMENT'S LAST CRACK AT CHANGING THE SYSTEM THE CATASTROPHIC CARE ACT OF 1988 PROPOSED BY PRESIDENT REAGAN AND EAGERLY ENACTED BY CONGRESS THE INITIATIVE TURNED INTO PERHAPS THE BIGGEST LEGISLATIVE FIASCO OF THE PAST DECADE DESPITE THE ASSESSMENT OF SEN ROCKEFELLER A WEST VIRGINIA DEMOCRAT AND MANY OTHERS THAT IT WAS BASICALLY A GOOD PROGRAM THE BILL AIMED AT PROTECTING MEDICARE BENEFICIARIES FROM THE FINANCIALLY DEBILITATING CONSEQUENCES OF VERY EXPENSIVE ILLNESSES LATE IN LIFE WAS REPEALED IN 1989 JUST 17 MONTHS AFTER IT PASSED DUE TO INTENSE PRESSURE FROM ONE OF THE NATION'S MOST POWERFUL POLITICAL GROUPS SENIOR CITIZENS THE DEBACLE HAS IMPORTANT LESSONS FOR CONGRESS AND THE CLINTON ADMINISTRATION AS THEY PREPARE FOR AN EVEN MORE AMBITIOUS UNDERTAKING IN HEALTHCARE REVISION AMONG THEM MAKE SURE THE PEOPLE PAYING THE BULK OF THE PRICE GET SOMETHING THEY WANT IN RETURN AND DON'T START COLLECTING FROM TAXPAYERS UNTIL PROGRAM BENEFITS BEGIN TO FLOW THE FATAL FLAW OF CATASTROPHIC CARE WAS ASKING MIDDLE AND HIGHINCOME BENEFICIARIES TO PAY FOR MOST OF THE COST OF THE PROGRAM THROUGH AN INCOME SURTAX IN ADDITION ALL BENEFICIARIES WERE ASSESSED A MODEST FLAT MONTHLY FEE BASICALLY THE PROBLEM WAS THAT YOU ENDED UP PROVIDING A SERVICE THAT A LARGE NUMBER OF AMERICANS WELCOMED BUT DIDN'T FEEL INTENSELY ABOUT AND YOU PROPOSED TO PAY FOR IT BY ALLOCATING THE COSTS TO A SMALL NUMBER WHO FELT THEY DIDN'T NEED IT SAID THOMAS MANN DIRECTOR OF GOVERNMENTAL STUDIES AT THE BROOKINGS INSTITUTION SENIORS OBJECTED VEHEMENTLY AS REP ROSTENKOWSKI DEMOCRATIC CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE DISCOVERED DURING A VISIT TO HIS CHICAGO DISTRICT IN AUGUST 1989 SOME PEOPLE POUNDED ON HIS CAR AFTER HE EMERGED FROM A MEETING WHILE OTHERS HELD SIGNS THAT READ LIAR IMPEACH AND RECALL ONE ELDERLY WOMAN CLIMBED ONTO THE HOOD OVERWHELMED MR ROSTENKOWSKI FLED ON FOOT CAMERAS CLICKING MISUNDERSTANDINGS ABOUNDED IN THE CATASTROPHICCARE CALAMITY THE WORD CATASTROPHIC MADE PEOPLE THINK IT WAS A POLICY THAT WOULD PROVIDE JUST FOR THE SEVERELY ILL WHEN IN FACT THE MEASURE ALSO INCLUDED LIMITS ON WHAT BENEFICIARIES WOULD HAVE PAID FOR LONG HOSPITAL STAYS DOCTORS' BILLS AND PRESCRIPTION DRUGS BUT THE LEGISLATION SIDESTEPPED TWO ISSUES IMPORTANT TO SENIORS COST CONTAINMENT AND LONGTERM CARE FOR EXAMPLE IT WOULDN'T HAVE COVERED EXTENDED STAYS IN NURSING HOMES OR THE COSTS OF CARE AT HOME WHERE MANY SENIORS SUFFERING FROM STROKE HEART DISEASE OR ARTHRITIS OFTEN PREFER TO STAY WHAT WE FOUND OUT WAS PEOPLE WEREN'T WILLING TO PAY MONEY FOR WORTHWHILE THINGS IF THEIR MAIN CONCERNS WEREN'T ADDRESSED SAID JOHN ROTHER LEGISLATIVE AND PUBLIC POLICY DIRECTOR FOR THE AMERICAN ASSOCIATION OF RETIRED PERSONS AND A VETERAN OF THE CATASTROPHICCAREBILL BATTLE THE LAW'S FINANCING WAS FLAWED AS WELL MR ROTHER SAID THE TAX ELEMENT WAS FRONTLOADED THEY WERE PAYING THE EXTRA TAXES BEFORE THE BENEFITS WERE AVAILABLE ONE WOULD HOPE LEGISLATORS WOULDN'T REPLICATE THAT MISTAKE HE SAID ROSTY'S WILD RIDE AS IT CAME TO BE KNOWN SERVES AS A RECURRING REMINDER FOR LAWMAKERS TO CONSULT CLOSELY WITH CONSTITUENTS BEFORE SELECTING A STRATEGY FOR HEALTHCARE OVERHAUL HENCE THE PLETHORA OF TOWN MEETING FORUMS AROUND THE COUNTRY WHERE TAXPAYERS TELL OF THEIR HEALTHCARE STRUGGLES SUCH EVENTS HELP POLICY MAKERS GET OUT AND GET A WHOLE LOT CLOSER TO THE PUBLIC THAN ANYONE TRIED TO DO FOR THE CATASTROPHIC HEALTH CARE ACT SAID SHOSHANNA SOFAER AN ASSOCIATE PROFESSOR OF HEALTH CARE SCIENCES AT GEORGE WASHINGTON UNIVERSITY MEDICAL CENTER MS SOFAER ALSO WAS COCHAIRWOMAN OF A WORKING GROUP OF PRESIDENT CLINTON'S TASK FORCE ON NATIONAL HEALTH CARE REFORM THE CANDID PERSONAL STORIES ALSO TOLD AT THE PUBLIC GATHERINGS REINFORCE THE POINT THAT REFORM MUST BE KEPT COMPREHENSIBLE AND FREE OF POLICY WONK LANGUAGE SO IT CAN BE TRANSLATED INTO ENGLISH AND EXPLAINED TO PEOPLE MS SOFAER SAID THE CATASTROPHICCARE EPISODE ALSO SUGGESTS THAT SUCCESSFUL HEALTHCARE REVISION MUST HAVE A BROAD APPEAL WHILE THE CATASTROPHICCARE BILL WOULD HAVE BENEFITED LOWERINCOME SENIORS WELLTODO PEOPLE DIDN'T SEE ANYTHING IN IT FOR THEM MR ROTHER SAID THIS TIME AROUND MANY EXPERTS BELIEVE CONGRESS SHOULD STRIVE TO MAKE THE CHANGES SOLID AND SIMPLE BUT GIVEN THE COMPLEXITIES OF THE TASK THAT MAY NOT BE EASY IT'S MY GREATEST FEAR THAT THIS NEW HEALTH PROPOSAL WILL BE HARD TO EXPLAIN TO PEOPLE WHEN SOMETHING IS VERY COMPLICATED IT LEAVES THE DOOR OPEN TO THOSE WHO WOULD ATTACK IT BY EXAGGERATION OR MISREPRESENTATION MR ROTHER SAID AND EVEN THE BEST PUBLICRELATIONS CAMPAIGN WON'T SELL A PACKAGE THAT PEOPLE CAN'T UNDERSTAND SAID MS SOFAER IF THEY DON'T GET IT THEY WON'T TRUST IT EVEN IF IT'S RIGHT FOR THEM 9306070066 930607 THE OUTLOOK MAJOR DECISIONS LOOM ON HEALTHCARE PLAN BY ALAN MURRAY WASHINGTON ANYONE STILL SEARCHING FOR BILL CLINTON'S POLITICAL SOUL MAY LEARN A GREAT DEAL FROM THE DECISIONS HE MAKES IN CRAFTING HIS HEALTHCARE PLAN ASSUMING HE EVENTUALLY DOES MAKE THOSE DECISIONS NO OTHER ISSUE WILL FORCE THE PRESIDENT TO CONFRONT SO DIRECTLY HIS FUNDAMENTAL PHILOSOPHY OF GOVERNMENT AND OF GOVERNMENT'S ROLE IN THE ECONOMY HEALTHCARE OVERHAUL IS AN ENORMOUSLY COMPLEX UNDERTAKING INVOLVING HUNDREDS OF SEPARATE DECISIONS THAT INTERRELATE IN WAYS THAT WOULD DRIVE MR RUBIK CRAZY IT INVOLVES RESHAPING ONESEVENTH OF THE US ECONOMY AN ENTERPRISE ROUGHLY EQUAL TO THE ECONOMY OF ITALY AT THE CORE OF THE EFFORT NEVERTHELESS LIE SEVERAL KEY QUESTIONS THAT PRESIDENT CLINTON MUST DEAL WITH AND ON EACH THERE IS NO CLEAR CONSENSUS WITHIN THE DEMOCRATIC PARTY OR EVEN AMONG HIS OWN ADVISERS HOW FAR DOES PRESIDENT CLINTON BELIEVE THE NOTION OF GOVERNMENT ENTITLEMENT SHOULD EXTEND DESPITE ALL THE TALK IN WASHINGTON ABOUT LIMITING GOVERNMENT ENTITLEMENT PROGRAMS WHICH PROVIDE AUTOMATIC BENEFITS TO CERTAIN GROUPS SUCH AS THE ELDERLY THE PRESIDENT'S HEALTHCARE PLAN WOULD AMOUNT TO THE BIGGEST EXPANSION IN GOVERNMENTPROVIDED ENTITLEMENTS SINCE THE ENACTMENT OF MEDICARE BEHIND THE EFFORT IS A WIDELY SHARED BELIEF THAT THE GOVERNMENT SHOULD ENSURE THAT ALL AMERICANS GET ADEQUATE HEALTH CARE BUT HOW MUCH IS ADEQUATE EVERY AMERICAN IS ENTITLED TO FOOD BUT NOT A SIXCOURSE MEAL AT LE CIRQUE AND EVERYONE DESERVES SHELTER BUT NOT NECESSARILY A FIVEBEDROOM SPREAD IN BLOOMFIELD HILLS WE ARE A NATION OF INEQUALITY AND IN THE PAST THE GOVERNMENT HAS ACCEPTED RESPONSIBILITY ONLY FOR PROVIDING A CERTAIN MINIMUM LEVEL OF BENEFITS NOT FOR ENSURING THE SAME BENEFITS TO ALL IN HER PURSUIT OF HEALTHCARE EQUALITY HILLARY RODHAM CLINTON HAS ADVOCATED A PLAN THAT WOULD GUARANTEE EVERY AMERICAN COVERAGE THAT IS SIGNIFICANTLY MORE GENEROUS THAN MOST WORKING PEOPLE NOW GET SHE WANTS TO AVOID A TWOTIERED SYSTEM IN WHICH THE FORTUNATE ENJOY BETTER COVERAGE THAN THE LESS FORTUNATE WORRIED ABOUT THE ENORMOUS COST THE PRESIDENT'S ECONOMIC ADVISERS BALKED AT SUCH GENEROSITY AND IN A COMPROMISE BROKERED BY THE PRESIDENT THEY TENTATIVELY SETTLED ON A PLAN LESS GENEROUS THAN THOSE PROVIDED BY MOST LARGE COMPANIES AND ROUGHLY EQUAL TO THE BASIC BLUE CROSS/BLUE SHIELD PLAN GIVEN TO FEDERALGOVERNMENT EMPLOYEES THAT DECISION ISN'T FINAL HOWEVER AND MAY BE REVISITED IN HIS QUEST FOR CHANGE HOW WILLING IS PRESIDENT CLINTON TO TRAMPLE ESTABLISHED ARRANGEMENTS AND INSTITUTIONS THE FIRST LADY IS PUSHING FOR A PLAN THAT WOULD IMPOSE A PAYROLL TAX SHE CALLS IT A WAGEBASED PREMIUM ON EVERY COMPANY TO FINANCE THE PROGRAM THE PAYROLL TAX WOULD REPLACE THE PREMIUMS COMPANIES NOW PAY FOR WORKERS' HEALTH INSURANCE AND EVERY WORKER ALL ACROSS THE COUNTRY WOULD BE PROVIDED THE SAME PACKAGE OF BENEFITS AGAIN THE IDEA IS APPEALINGLY ELEGANT IN THEORY PARTLY BECAUSE OF ITS BUILTIN PROGRESSIVENESS WITH A PAYROLL TAX OF ABOUT 9 THE RATE UNDER DISCUSSION WITHIN THE ADMINISTRATION SOMEONE MAKING 50000 A YEAR WOULD PAY MUCH MORE FOR HEALTHCARE BENEFITS THAN SOMEONE MAKING 25000 BUT SOME ADVISERS IN THE ADMINISTRATION ARE ASKING WHETHER IT REALLY MAKES SENSE TO WREAK SUCH CHANGE IN HEALTHCARE FINANCING POLLS SHOW MANY AMERICANS ARE RELATIVELY SATISFIED WITH THE HEALTHCARE COVERAGE CURRENTLY PROVIDED TO THEM BY THEIR EMPLOYERS WHY RISK ALIENATING THESE PEOPLE BY MAKING UNNECESSARY CHANGES IF MR CLINTON ABANDONS THE PAYROLL TAX AS SOME OF HIS ECONOMIC ADVISERS ARE URGING HE WILL OF COURSE HAVE TO FIND OTHER WAYS TO PAY FOR HEALTH INSURANCE FOR THE POOR AND FOR SUBSIDIES TO SMALL BUSINESSES UNABLE TO AFFORD INSURANCE THAT WON'T BE EASY IT MAY LEAD HIM TO RETURN TO THE FIRST QUESTION AND TO EMBRACE A LESS GENEROUS AND LESS COSTLY PACKAGE INDEED MANY ADMINISTRATION PEOPLE WHO OPPOSE A PAYROLL TAX ALSO FAVOR A LESSGENEROUS PACKAGE AND THOSE WHO FAVOR A GENEROUS PACKAGE ARE MORE INCLINED TOWARD A PAYROLL TAX WHAT ROLE SHOULD MARKETS PLAY IN KEEPING COSTS UNDER CONTROL FOR MONTHS PRESIDENT CLINTON HAS BEEN ON BOTH SIDES OF THIS QUESTION HE LIKES TO TALK ABOUT MANAGED COMPETITION BUZZWORDS THAT SUGGEST A SYSTEM CONSTRUCTED SO THAT COMPETITION AMONG HEALTHCARE PROVIDERS DOES THE JOB OF KEEPING COSTS DOWN AND QUALITY UP BUT HE ALSO FAVORS A GLOBAL BUDGET DESIGNED TO CONTROL COSTS BY LIMITING BOTH GOVERNMENT AND PRIVATE HEALTHCARE SPENDING AND RECENTLY HIS ADVISERS HAVE ALSO TALKED ABOUT SHORTTERM PRICE CONTROLS ON DOCTORS HOSPITALS AND DRUGS MAKE NO MISTAKE ABOUT IT PRICE CONTROLS WOULD LEAD TO SHORTAGES AND A GLOBAL BUDGET WITH TEETH WOULD INEVITABLY LEAD TO RATIONING BUT MANY ADMINISTRATION ADVISERS CONSIDER SUCH REGULATION ESSENTIAL TO STOP THE SURGE IN HEALTHCARE COSTS OTHER ADMINISTRATION OFFICIALS HOWEVER BELIEVE THAT THE MARKET CAN BE MADE TO WORK ESPECIALLY IF PEOPLE ARE REQUIRED TO MAKE SUBSTANTIAL COPAYMENTS FOR THEIR HEALTH CARE AND IF THEY HAVE TO PAY AFTERTAX DOLLARS FOR ANY BENEFITS EXCEEDING THE BASIC PACKAGE AND THESE OFFICIALS WORRY ABOUT HEAVYHANDED REGULATION EACH OF THESE THREE QUESTIONS WILL FORCE THE PRESIDENT TO TAKE SIDES SOMETHING HE CLEARLY PREFERS TO AVOID THERE WILL AS ALWAYS BE SOME OPPORTUNITIES TO SPLIT THE DIFFERENCE BUT MR CLINTON COULD ALSO SEIZE UPON THIS PROBLEM AS AN OPPORTUNITY TO GIVE AN INCREASINGLY CONFUSED NATION A CLEARER WINDOW ON HIS PHILOSOPHY OF GOVERNMENT 9306070065 930607 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT SOUTHERN CALIFORNIA EDISON CO 150 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS DUE 1988 AND 125 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS DUE 2003 VIA COMPETITIVE BIDDING AES CORP 75 MILLION OF SUBORDINATED NOTES DUE 2000 VIA JP MORGAN SECURITIES INC AMERICAN SAFETY RAZOR INITIAL FIVE MILLION SHARES VIA SMITH BARNEY ASTRO TANKERS LTD INITIAL FIVE MILLION SHARES VIA LEHMAN BROTHERS BELL & HOWELL CO 8 MILLION OF SENIOR NOTES DUE 2000 VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP BURLINGTON RESOURCES INC INITIAL 74 MILLION SHARES OF BENEFICIAL INTEREST VIA SMITH BARNEY COMPUSA INC 85 MILLION OF SENIOR SUBORDINATED NOTES DUE 2000 VIA KIDDER PEABODY & CO EPIC HEALTHCARE GROUP INC 160 MILLION OF SENIOR SUBORDINATED NOTES DUE 2003 VIA MORGAN STANLEY & CO INTERNATIONAL BUSINESS MACHINES CORP 1 BILLION OF BONDS DUE 2000 AND 500 MILLION OF BONDS DUE 2013 VIA DEALERS LED BY MORGAN STANLEY & CO MUSICLAND STORES 110 MILLION OF SENIOR SUBORDINATED NOTES DUE 2003 VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP NORTHWESTERN STEEL AND WIRE CO 100 MILLION OF SENIOR NOTES DUE 2001 VIA LEHMAN BROTHERS TRUMP PLAZA FUNDING INC 315 MILLION OF FIRST MORTGAGE NOTES DUE 2001 AND 60 MILLION OF PAYINKIND NOTES DUE 2003 VIA MERRILL LYNCH & CO CONTRA COSTS COUNTY CALIF A MAXIMUM OF 125 MILLION 199394 SERIES A TAX AND REVENUE ANTICIPATION NOTES VIA COMPETITIVE BIDDING OHIO 115 MILLION GENERAL OBLIGATION BONDS INCLUDING 15 MILLION SERIES C COAL DEVELOPMENT BONDS AND 100 MILLION SERIES S HIGHWAYOBLIGATION BONDS VIA COMPETITIVE BIDDING SANTA CLARA COUNTY CALIF A MAXIMUM OF 225 MILLION 199394 TAX AND REVENUE ANTICIPATION NOTES VIA COMPETITVE BIDDING WASHINGTON SUBURBAN SANITARY DISTRICT MD 120 MILLION VARIOUS 1994 UNLIMITEDTAX BONDS VIA COMPETITIVE BIDDING SACRAMENTO COUNTY CALIF 285 MILLION 1993 TAX AND REVENUE ANTICIPATION NOTES VIA COMPETITIVE BIDDING ORLANDOORANGE COUNTY EXPRESSWAY AUTHORITY FLA 5944 MILLION BONDS INCLUDING 4739 MILLION SENIORLIEN REVENUE REFUNDING BONDS AND 1205 MILLION JUNIORLIEN REVENUE REFUNDING BONDS VIA A PAINEWEBBER INC GROUP 9306070064 930607 INTERNATIONAL PUSH FOR NEW RUSSIAN CONSTITUTION IS HOSTAGE TO SAME OLD STANDOFF CONFERENCE OPENS WITH YET MORE SKIRMISHING BY YELTSIN PARLIAMENT BY CLAUDIA ROSETT STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW PRESIDENT BORIS YELTSIN'S CONSTITUTIONAL CONFERENCE IS DUE TO PRESS AHEAD IN THE KREMLIN TODAY WITH WHAT HE HAS CALLED THE LOFTY AND NOBLE GOAL OF WRITING A NEW RUSSIAN CONSTITUTION THE STICKING POINT IS WHETHER THE UNRULY PARLIAMENT WILL GO ALONG AT THE CONFERENCE'S OPENING CEREMONY SATURDAY PROSPECTS FOR SUCH COOPERATION LOOKED DIM MR YELTSIN IN A 35MINUTE ADDRESS TO SOME 760 DELEGATES FROM ACROSS RUSSIA CALLED THE CURRENT PARLIAMENT ILLEGITIMATE THE PRESENT REPRESENTATIVE BODIES WERE ELECTED ON THE BASIS OF THE SOVIET ELECTORAL LAW WHICH MEANS THEY ARE THE HEIRS TO USURPED POWER HE SAID ADDING THEY ARE ILLEGITIMATE IN A DEMOCRATIC SYSTEM IN RESPONSE PARLIAMENT CHAIRMAN RUSLAN KHASBULATOV DEMANDED TIME TO DELIVER HIS OWN SPEECH MR KHASBULATOV LAST MONTH DENOUNCED ANY ATTEMPT BY MR YELTSIN TO CONVENE A CONSTITUTIONAL ASSEMBLY LATE LAST WEEK WHEN IT WAS CLEAR THE CONFERENCE WOULD BE HELD ANYWAY MR KHASBULATOV AGREED TO ATTEND AS A DELEGATE OF PARLIAMENT MR KHASBULATOV WAS OFFERED SEVEN MINUTES TO HAVE HIS SAY PROTESTING THAT THIS TIME LIMIT WAS A TRAGIC VIOLATION OF CONSTITUTIONAL PROCESS MR KHASBULATOV WALKED OUT HE WAS FOLLOWED BY SOME 50 OTHER DELEGATES OUTSIDE THE CONFERENCE HALL MR KHASBULATOV ISSUED A STATEMENT CHARGING THAT THE PRESIDENTIAL SIDE HAS PROPOSED A CONSTITUTION DRAFT THAT IS WORSE EVEN THAN THE FIRST DRAFT AND INDEED WORSE THAN THE EXISTING CONSTITUTION MR KHASBULATOV OFFERING HIS MAIN COMPLAINT SAID MR YELTSIN'S DRAFT WOULD INTRODUCE UNLIMITED PRESIDENTIAL POWER MR YELTSIN HOWEVER PROBABLY WILL BE ATTEMPTING A BALANCING ACT RATHER THAN TRYING TO BECOME CZAR AT THIS CONFERENCE SCHEDULED TO END JUNE 16 THOUGH MR YELTSIN CLEARLY HOPES TO STRIP PARLIAMENT OF MUCH OF ITS POWER HE WOULD HAVE A TOUGH TIME KEEPING ALL THE POLITICAL BOOTY HIMSELF TO WIN THE SUPPORT OF REGIONAL DELEGATES FOR HIS NEW CONSTITUTION MR YELTSIN WILL PROBABLY HAVE TO TRADE AWAY A FAIR DEGREE OF POWER OFFERING GREATER LOCAL AUTONOMY TO THE RUSSIA'S 88 REGIONS AND REPUBLICS SUPPORT FROM THE REGIONS WILL BE IMPORTANT SHOULD MR YELTSIN EMERGE FROM HIS 11DAY CONFERENCE WITH A FINAL DRAFT CONSTITUTION READY TO PRESENT TO THE NATION MR KHASBULATOV INSISTS THAT ANY SUCH DOCUMENT BE SUBMITTED IN NOVEMBER TO PARLIAMENT FOR RATIFICATION OR REJECTION MR YELTSIN ON THE OTHER HAND CALLED IN HIS SPEECH FOR NEW PARLIAMENTARY ELECTIONS TO BE HELD BY OCTOBER TWO YEARS EARLIER THAN SCHEDULED A NEW DEMOCRATICALLY ELECTED PARLIAMENT MIGHT TAKE A KINDLIER VIEW OF A NEW CONSTITUTION BUT FOR THIS OR FOR A REFERENDUM IN THE EVENT NO EARLY ELECTIONS ARE HELD MR YELTSIN WILL NEED SUPPORT FROM THE REGIONS TO HELP COUNTER RESISTANCE IN THE CURRENT PARLIAMENT BUT FOR MANY HERE ADOPTING A NEW CONSTITUTION SEEMS THE ONLY CIVILIZED WAY FOR RUSSIA'S GOVERNMENT TO ESCAPE THE STANDOFF IN WHICH THE SOVIETERA CONGRESS OF PEOPLE'S DEPUTIES CONTINUES TO BLOCK MR YELTSIN'S REFORM EFFORTS THE CURRENT CONSTITUTION WAS ADOPTED IN 1978 UNDER LEONID BREZHNEV FOR ALL ITS MANY AMENDMENTS SINCE IT IS STILL TAILORED TO THE OLD SOVIET SYSTEM IN WHICH THE COMMUNIST PARTY RATHER THAN BALANCED BRANCHES OF GOVERNMENT CALLED THE SHOTS MR YELTSIN BY CONTRAST STRESSED IN HIS SPEECH SATURDAY RUSSIA'S NEED FOR PRIVATE PROPERTY RIGHTS AN INDEPENDENT JUDICIARY AND THE RULE OF LAW THE RUSSIAN SYSTEM AS IT STANDS TODAY COMES DOWN TO A LOGJAM IN WHICH EVERYONE CITES THE MOST CONVENIENT AUTHORITY PARLIAMENT INVOKES ITS RIGHTS AND POWERS UNDER THE OLD CONSTITUTION MR YELTSIN ON THE STRENGTH OF POPULAR SUPPORT SUCH AS THAT SHOWN HIM IN THE APRIL 25 REFERENDUM KEEPS INSISTING THAT THE WILL OF THE RUSSIAN PEOPLE MUST PREVAIL OVER INSTITUTIONS THAT ARE RELICS OF SOVIET DAYS MR YELTSIN ARGUED IN HIS SPEECH THAT IT IS NECESSARY THAT SOCIETY SHOULD PUT THE STATE AT ITS SERVICE BY MEANS OF A CONSTITUTION AND THUS GUARANTEE THE RIGHTS AND FREEDOMS OF CITIZENS RATHER THAN THE RIGHTS OF BUREAUCRATS TO ARBITRARINESS 9306070063 930604 QUARTERLY EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9306070062 930607 TAX BILL INCLUDES RELIEF FOR FIRMS ON HEDGE RULE WALL STREET WOULD BENEFIT FROM THE HOUSE'S STAND AGAINST AN IRS POSITION BY GREG HITT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONGRESS IS MOVING TO GIVE WALL STREET LIMITED RELIEF FROM A SUPREME COURT DECISION THAT HAS CREATED UNCERTAINTY ABOUT HOW THE GOVERNMENT SHOULD TAX SOPHISTICATED TRANSACTIONS INTENDED TO REDUCE BUSINESS RISK AS A BALM FOR BOOSTING SECURITIES FIRMS' TAXES 389 BILLION BY MAKING THEM VALUE THEIR INVENTORIES AT MARKET PRICES THE TAX PACKAGE APPROVED BY THE HOUSE IN MAY WOULD ALLOW FINANCIALSERVICES FIRMS TO COUNT HEDGES TAKEN AGAINST THEIR INVENTORY AS ORDINARY GAINS OR LOSSES THE LEGISLATION WOULD UNDERCUT THE INTERNAL REVENUE SERVICE'S VIEW THAT THE 1988 SUPREME COURT DECISION INVOLVING ARKANSAS BEST CORP REQUIRED SUCH TRANSACTIONS TO BE TREATED AS CAPITAL GAINS OR LOSSES BECAUSE THERE IS A LIMIT ON HOW MUCH CAN BE DEDUCTED FOR CAPITAL LOSSES THE IRS POSITION SIGNIFICANTLY INCREASES BUSINESS TAX LIABILITY THE HOUSE BILL SIGNALS SUPPORT FOR ADDRESSING THE BROADER BUSINESS CONCERNS IN WHICH BILLIONS OF DOLLARS ARE AT STAKE AND AS ACTION SHIFTS TO THE SENATE FINANCE COMMITTEE THERE IS HOPE OF MORE SPECIFIC REMEDIES IT HITS A LOT OF PEOPLE FROM FARMERS TO THE FORTUNE 500 SAID TOM ERICKSON LOBBYIST FOR THE NATIONAL GRAIN TRADE COUNCIL AND A DIVERSE COALITION LINKING CITICORP WITH US BEET SUGAR PROCESSORS HAS TAKEN THE FIGHT TO CAPITOL HILL THE COMPLEXITY OF THE ISSUES ARE ILLUSTRATED BY A PENDING TAX COURT CASE THAT COULD COST THE FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION WHILE A FARMER MIGHT ENTER INTO A SIMPLE FUTURES CONTRACT TO PROTECT AGAINST A CHANGE IN THE PRICE OF CATTLE FANNIE MAE MAINTAINS A WEB OF HEDGING TRANSACTIONS DESIGNED TO EASE THE RISK ASSOCIATED WITH THE EBB AND FLOW OF HOME MORTGAGES THROUGH THE CORPORATION'S BOOKS RISK MANAGEMENT THROUGH THE USE OF HEDGING TRANSACTIONS IS A TIMEHONORED AND IMPORTANT MANAGEMENT TOOL SAID FANNIE MAE SPOKESMAN DAVID JEFFERS IF THE IRS PREVAILS IT WILL SERVE TO IMPEDE THE ABILITY OF A LOT OF AMERICAN BUSINESSES TO MANAGE RISK IN THE SENATE A MAJORITY OF THE FINANCE COMMITTEE JOINED RECENTLY TO ASK TREASURY SECRETARY LLOYD BENTSEN TO LOOK INTO WHAT THE LAWMAKERS CALLED THE IRS'S EXTREME INTERPRETATION OF THE SUPREME COURT DECISION THIS THREAT OF CAPITAL TREATMENT HAS ADVERSELY AFFECTED WHAT HAD BEEN COMMONPLACE AND REASONABLE BUSINESS PRACTICE SAID A LETTER THAT INCLUDED THE SIGNATURES OF DEMOCRATIC LEADER GEORGE MITCHELL OF MAINE AND REPUBLICAN LEADER ROBERT DOLE OF KANSAS THE LETTER AMONG OTHER THINGS ACCUSED THE IRS OF JEOPARDIZING TWO PILOT PROGRAMS INTENDED TO ENCOURAGE SMALL FARMERS TO TAKE ADVANTAGE OF FUTURES MARKETS AND CONSUMER COOPERATIVES TO USE ENERGY FUTURES AND OPTIONS TO PROTECT AGAINST UNANTICIPATED FUELPRICE INCREASES WE SINCERELY BELIEVE THAT THIS MATTER HAS REACHED THE POINT OF BECOMING A SERIOUS ECONOMIC IMPEDIMENT THE SENATORS SAID TREASURY OFFICIALS SAY SECRETARY BENTSEN IS SYMPATHETIC HE WANTS IT DEALT WITH SAID A BENTSEN AIDE WE UNDERSTAND IT'S A PROBLEM 9306070061 930607 BUSINESS BRIEF ROCKWELL INTERNATIONAL CO AIR FORCE MILSTAR CONTRACTS GO TO COMPANY RAYTHEON ROCKWELL INTERNATIONAL CORP SAID IT WON A 38MONTH 111 MILLION AIR FORCE CONTRACT TO BUILD 24 COMMUNICATIONS COMMANDPOST TERMINAL SYSTEMS AND TO PROVIDE RELATED SPARE PARTS THE SEAL BEACH CALIF AEROSPACE ELECTRONICS AND AUTOMOTIVE CONCERN SAID THE NEW SYSTEMS ARE PART OF THE AIR FORCE MILSTAR OR MILITARY STRATEGIC AND TACTICAL RELAY COMMUNICATIONS SATELLITE PROGRAM SEPARATELY RAYTHEON CO SAID IT WAS AWARDED A 74 MILLION FOURYEAR CONTRACT TO PRODUCE 20 COMMANDPOST TERMINALS AS PART OF THE SAME AIR FORCE AWARD RAYTHEON IN LEXINGTON MASS HAS INTERESTS IN THE ELECTRONICS AIRCRAFT PRODUCTS AND APPLIANCE BUSINESSES THE COMPANIES WILL PRODUCE SEVERAL TYPES OF SYSTEMS ALL OF WHICH CONTAIN MODEMS AND RADIO FREQUENCY EQUIPMENT COMMANDPOST TERMINALS ARE DESIGNED TO DISSEMINATE HIGHLEVEL MILITARY COMMUNICATIONS FOR EXAMPLE FROM SENIOR MILITARY OFFICIALS TO THE PRESIDENT OF THE U S UNDER ADVERSE CONDITIONS 9306070060 930607 OTC FOCUS HOLLYWOOD CASINO SHARES OFFER BOLD BET FOR GAMBLERS BY SCOTT MCCARTNEY AND SARA CALIAN STAFF REPORTERS OF THE WALL STREET JOURNAL HERE'S A NEW STOCK THAT DOUBLED IN ITS FIRST TWO DAYS THEN LOST A FAST 20 DURING THE REST OF LAST WEEK IT'S HOLLYWOOD CASINO CORP AN UNPROFITABLE DALLASBASED COMPANY THAT ILLUMINATES THE RISKS SOME INVESTORS ARE TAKING IN THE CASINOSTOCK FRENZY NO SOONER WAS THE 80 MILLION INITIAL PUBLIC OFFERING OF A 30 STAKE PRICED AT 16 THAN THE SHARES LEAPED AS HIGH AS 28 ON THEIR FIRST TRADING DAY MAY 28 THEY PEAKED AT 3275 THE FOLLOWING TUESDAY AS INVESTORS RETURNED FROM THE MEMORIAL DAY WEEKEND HIGH HOPES FOR TEXAS GAMBLING WERE PART OF THE REASON TEXAS IS AN ENORMOUS EXTRA IN THE PRICE OF THE STOCK SAYS ANDREW RACZ DIRECTOR OF RESEARCH AT AJ MICHAELS & CO A SMALL HAUPPAGE NY INVESTMENT BANKING FIRM THAT HOLDS A POSITION IN THE STOCK HOLLYWOOD CASINO WHICH OWNS 81 OF PRATT HOTEL CORP AND IS CONTROLLED BY HIS FRIEND JACK E PRATT IS SET TO BID ON AT LEAST THREE OF THE LICENSES THE TEXAS LEGISLATURE IS CONSIDERING RIGHT NOW EVEN BETTER TEXAS HAS NO LIMIT ON THE SQUARE FOOTAGE AND FLOOR SIZE OF CASINOS THERE'S JUST ONE PROBLEM WITH SUCH GLEE THE TEXAS LEGISLATURE HAS NO CASINO LAW IN ITS FINAL FILING DATED MAY 27 HOLLYWOOD CASINO REITERATED EARLIER REMARKS THAT A RIVER BOAT GAMBLING BILL INTRODUCED IN THE TEXAS LEGISLATURE IN FEBRUARY WOULD HAVE PROVIDED FOR 15 GAMBLING LICENSES TO BE GRANTED BUT THE BILL WAS SHELVED LONG BEFORE THE OFFERING DATE IT NEVER EVEN REACHED A COMMITTEE VOTE IT WAS PRONOUNCED VERY EARLY ON AS DOA SAYS STATE REP DEBRA DANBURG OF HOUSTON THE BILL'S SPONSOR IN FIVE YEARS HOLLYWOOD CASINO HAS NEVER POSTED AN ANNUAL PROFIT LAST YEAR'S NET LOSS WAS 361 MILLION ACCORDING TO THE PROSPECTUS THE STOCK'S INITIAL LEAP PARTLY REFLECTS ENTHUSIASM FOR HOLLYWOOD'S PENDING SUMMER REVENUE FROM AN AURORA ILL RIVER BOAT CASINO OPERATION WHICH SOME MUTUALFUND ANALYSTS THINK COULD GIVE HOLLYWOOD A FULLYEAR PROFIT OF 58 CENTS A SHARE BUT THE STOCK FELL 3/4 FRIDAY ON HEAVY VOLUME AS INVESTORS FRETTED OVER POSSIBLE EVENTUAL COMPETITION FROM CHICAGOAREA GAMBLING IN THE USUAL PREOFFERING DOCUMENTS HOLLYWOOD CASINO WHOSE MAIN INTERESTS SO FAR ARE THE SANDS CASINO HOTEL IN ATLANTIC CITY NJ THROUGH PRATT HOTEL AND THE RIVER BOAT VENTURE WEST OF CHICAGO NEVER MENTIONS THAT THE TEXAS BILL WAS DEAD BY MARCH BECAUSE OF OPPOSITION FROM GOV ANN RICHARDS AND LT GOV BOB BULLOCK SHOULD THE LACK OF A POLITICAL HEARTBEAT HAVE BEEN MENTIONED ANY CORPORATE FILING EVEN IF TECHNICALLY TRUE DOESN'T ABSOLVE THE COMPANY FROM LIABILITY IF IT CREATES A MISIMPRESSION SAYS SECURITIES LAWYER WILLIAM LERACH OF MILBERG WEISS BERSHAD HYNES & LERACH WHICH OFTEN REPRESENTS PLAINTIFFS BUT ALBERT J COHEN HOLLYWOOD CASINO'S CHIEF FINANCIAL OFFICER SAYS THE COMPANY NEVER FELT THAT THE BILL WAS DEAD EARLY ON AND THUS DIDN'T NEED TO DISCLOSE THAT IN THE PROSPECTUS IN ADDITION HOLLYWOOD HAS A RIVER BOAT LICENSE REQUEST PENDING IN GAMBLINGFRIENDLY LOUISIANA WHICH PLANS A CASINO IN NEW ORLEANS AS WELL AS 15 TO 25 RIVER BOAT CASINOS WE SAID WE ARE WORKING ON TEXAS AND ALABAMA AND WE STILL CONTINUE TO WORK THERE SAYS MR COHEN YOU HAVE TO WORK NOT ONLY IN STATES WHERE GAMBLING HAS BEEN ENACTED BUT ALSO IN STATES WHERE GAMBLING IS NOT YET APPROVED TEXAS'S LEGISLATIVE SESSION ENDED LAST MONDAY AND THE NEXT REGULARLY SCHEDULED SESSION WON'T OPEN UNTIL 1995 THE CHANCES OF THE GOVERNOR PUTTING IT ON A SPECIAL SESSION CALL BEFORE 1995 ARE PRETTY SLIM REP DANBURG CONCEDES UNLESS WE GET INTO A FINANCIAL CRISIS STILL WITH THE STATE ALREADY DIPPING ITS TOE IN THE LOTTERY AND HORSE RACING REP DANBURG THINKS HER BILL HAS A GOOD CHANCE OF PASSING IN 1995 LICENSES AND SUCH COULD TAKE ANOTHER YEAR OR MORE SOME INSTITUTIONAL INVESTORS SEE TEXAS AS A POSSIBLE MAJOR MARKET THREE TO FIVE YEARS FROM NOW AND ARE WILLING TO GAMBLE THAT HOLLYWOOD CASINO WILL CASH IN DOWN THE ROAD GAMBLING IS VIEWED AS CERTAINLY ONE OF THE MOST ATTRACTIVE GROWTH BUSINESSES RIGHT NOW PERIOD SAYS MORGAN KEEGAN & CO ANALYST NAPOLEON OVERTON THERE'S JUST A LOT OF DEMAND A LOT OF CAPITAL CHASING A FEW COMPANIES MR PRATT IS CHAIRMAN CHIEF EXECUTIVE OFFICER AND PRESIDENT OF HOLLYWOOD CASINO AS WELL AS CHIEF EXECUTIVE OF PRATT HOTEL MR PRATT THINKS BIG SAYS MR RACZ A PRIVATE PLACEMENT OF DEBT LAST YEAR AVERTED A DEBT CRISIS THAT MIGHT HAVE COST PRATT FAMILY MEMBERS CONTROL OF PRATT HOTEL AND PERHAPS EVEN THE LICENSE FOR THE SANDS PRATT HOTEL SHARES HAVE BEEN RISING SHARPLY FROM AROUND 2 A SHARE FIVE MONTHS AGO TO 13125 OFF 75 CENTS FRIDAY ON THE AMERICAN STOCK EXCHANGE ANALYSTS SAY THE AURORA OPERATION A PAIR OF FOURSTORY RIVER BOATS AND HEADLINER ENTERTAINMENT AT A NEARBY ONSHORE THEATER DOES LOOK LIKE A WINNER ILLINOIS SO FAR HAS AUTHORIZED ONLY 10 RIVER BOAT CASINO OPERATIONS IN THE STATE AURORA IS 38 MILES FROM DOWNTOWN CHICAGO PART OF THE ENTHUSIASM ON HOLLYWOOD IS THE LIMITED SUPPLY THERE ARE ONLY 10 OPERATIONS ALLOWED AND HOLLYWOOD HAS GOT ONE OF THEM SAYS TOM GRAVES AN ANALYST WITH STANDARD & POOR'S CORP BUT IT'S LIKELY TO BE MUCH HARDER FOR LATEARRIVING SMALL INVESTORS TO MAKE MONEY THAN THE PROS WHO WERE ALLOWED TO BUY IN THE IPO THERE'S A LOT OF SKEPTICISM BUT I THINK THIS IS A REAL THING AND THIS COMPANY COULD MAKE A LOT OF MONEY WHEN IT OPENS UP SAYS TOM SPRAGUE A GAMBLING ANALYST FOR FIDELITY MANAGEMENT & RESEARCH IN BOSTON OF COURSE HE CAN AFFORD TO WAIT AND STILL SHOW A NICE PAPER PROFIT HE BOUGHT THE STOCK IN THE IPO AND IS PLANNING TO HOLD ONTO IT FOR A WHILE I'M MORE INTERESTED IN CHICAGO THAN TEXAS RIGHT NOW SAYS MR SPRAGUE I DON'T EXPECT ANYTHING TO COME OUT OF THEIR TEXAS PLANS FOR THE NEXT TWO YEARS TECHNOLOGY STOCKS DRAGGED DOWN THE OTC MARKET THE NASDAQ COMPOSITE INDEX DROPPED 421 OR 060 TO 70201 DECLINING ISSUES OUTNUMBERED ADVANCERS 1414 TO 1301 ON TOTAL VOLUME OF 2518 MILLION SHARES DOWN FROM THURSDAY'S 2601 MILLION INTEL SHARES SLID 1 1/8 TO 112 3/4 MICROSOFT SLIPPED 5/8 TO 94 AND APPLE COMPUTER TUMBLED 1 1/2 TO 54 7/8 ON ITS FIRST TRADING DAY DISCOVERY ZONE SURGED 13 1/2 TO 35 1/2 UP FROM ITS OFFERING PRICE OF 22 THE COMPANY ORIGINALLY HAD EXPECTED THE SHARES TO BE OFFERED AT BETWEEN 16 AND 18 THROUGH UNDERWRITERS LED BY MERRILL LYNCH THE COMPANY OWNS AND OPERATES CHILDREN'S INDOOR PLAYGROUNDS SYNOPTICS COMMUNICATIONS PLUNGED 12 1/4 TO 106 SALOMON BROTHERS ANALYST DANIELLE DANESE DOWNGRADED HER RATING TO HOLD FROM BUY CITING CONCERN ABOUT THE STOCK'S VALUATION AND THE COMPANY'S ABILITY TO CONTINUE EXCEEDING ANALYSTS' EARNINGS ESTIMATES MS DANESE SAID IN HER RESEARCH REPORT THAT SYNOPTICS COULD BEAT WALL STREET'S CONSENSUS ESTIMATE FOR EARNINGS OF 103 A SHARE FOR THE SECOND QUARTER COMPARED WITH EARNINGS OF 34 CENTS A YEAR EARLIER BUT SHE SAID THAT AFTER THE CURRENT QUARTER ANNUAL EARNINGS GROWTH WILL BE LESS DRAMATIC FOR THE COMPUTER NETWORKING COMPANY 9306070059 930607 BUSINESS BRIEF KONICA CORP FIRM POSTS PROFIT FOR YEAR SEES IMPROVEMENT IN FUTURE KONICA CORP A LEADING JAPANESE MAKER OF PHOTOSENSITIVE MATERIALS SAID CONSOLIDATED PRETAX PROFIT IN THE YEAR ENDED MARCH 31 TOTALED 586 BILLION YEN 544 MILLION IN THE PREVIOUS FISCAL YEAR KONICA POSTED PRETAX PROFIT OF 262 BILLION YEN BUT AN ACCOUNTING CHANGE MAKING THE LATEST YEAR ONLY 11 MONTHS AND 11 DAYS LONG MAKES A DIRECT COMPARISON DIFFICULT SALES IN THE LATEST YEAR TOTALED 50262 BILLION YEN DOWN FROM THE 534 BILLION YEN IN THE PREVIOUS 12MONTH PERIOD THE COMPANY FORECAST A MODEST SALES INCREASE ALONG WITH IMPROVED PROFITABILITY THE CONSOLIDATED FORECAST IS SLIGHTLY STRONGER THAN THAT FOR THE PARENT COMPANY ALONE WHICH SEES A FLATTER PROFIT RISE DESPITE FIRMER SALES KONICA EXPERIENCED DIFFICULT CONDITIONS IN THE LATEST FISCAL YEAR AS THE RECESSION WORSENED AND THE YEN APPRECIATED SHARPLY AMID UNCERTAINTY ABOUT THE FUTURE JAPANESE PERSONAL CONSUMPTION WAS WEAK AND PRIVATE INVESTMENT WAS RESTRAINED HURTING DOMESTIC MARKET CONDITIONS 9306070058 930607 PEPPER AND SALT WITH SIGHS AND TEARS FROM TOOLS TO PANTS WE CAN'T AFFORD HER OUT OF ORDER SHOULD KNOW THAT THEIR SPEECHES QUITE OFTEN OFFENDA 9306070057 930607 INTERNATIONAL IMPORTED VEHICLE SALES IN JAPAN CLIMBED 72 DURING MONTH OF MAY SPECIAL TO THE WALL STREET JOURNAL TOKYO SALES OF NEW IMPORTED CARS TRUCKS AND BUSES IN JAPAN AS MEASURED BY REGISTRATIONS INCREASED 72 IN MAY FROM A YEAR EARLIER TO 14540 UNITS THE JAPAN AUTOMOBILE IMPORTERS' ASSOCIATION SAID AN ASSOCIATION SPOKESMAN SAID THE STATISTICS BEAR OUT A RECENT TREND THAT VEHICLES BUILT IN THE US BY HONDA MOTOR CO AND OTHER JAPANESE MAKERS CONTINUE TO SUPPORT OVERALL SALES THE SALES OF CARS MADE IN THE US BY JAPANESE FIRMS CONTINUE TO BE STRONG ENOUGH TO OFFSET SLUGGISHNESS IN GERMANMADE CARS WHICH DOMINATE JAPAN'S IMPORTED CAR MARKET HE SAID THE SPOKESMAN SAID JAPANESE FOREIGNCAR DEALERS HAVE STARTED PASSING ON THE EFFECT OF THE YEN'S RECENT RISE IN THE FORM OF HIGHER PRICES HE ADDED THAT SOME DEALERS STRIVING TO IGNITE DEMAND AT A TIME WHEN PERSONAL CONSUMPTION REMAINS WEAK REDUCED PRICES TO A GREATER DEGREE THAN THAT OF THE APPRECIATION OF THE YEN LOOKING AHEAD THE SPOKESMAN SAID HE SEES COMPETITION AMONG AUTO DEALERS GROWING FIERCER GIVEN THE SLOW PACE OF WAGE INCREASES AND CONSUMERS' STILL DEEPLY ROOTED UNEASINESS THE PACE OF GROWTH IN JAPANESE SUMMER BONUSES WHICH ACCOUNT FOR A BIG CHUNK OF HOUSEHOLD INCOME IS EXPECTED TO REMAIN LOW SOME ANALYSTS SAID JAPANESE PRIVATESECTOR WORKERS WILL GET BONUSES THIS YEAR THAT ARE BELOW YEAREARLIER LEVELS FOR THE FIRST TIME SINCE THE GOVERNMENT BEGAN KEEPING RECORDS IN 1970 9306070056 930607 TECHNOLOGY CABLEVISION TO USE DIGITAL'S TECHNOLOGY FOR DATA HIGHWAYS WOODBURY NY CABLEVISION SYSTEMS CORP SAID IT WILL BE THE FIRST MAJOR CABLE OPERATOR TO USE AN INNOVATIVE DIGITAL EQUIPMENT CORP TECHNOLOGY TO TURN CABLETELEVISION LINES INTO DATA HIGHWAYS FOR COMPUTER NETWORKS DIGITAL'S DIGITAL CHANNEL TECHNOLOGY EXTENDS THE ETHERNET NETWORKING METHOD WHICH IS USED INSIDE MANY BUILDINGS OVER REGULAR CABLE FOR AS MUCH AS 70 MILES CABLEVISION WILL BE ABLE TO DEDICATE A SINGLE CHANNEL TO ETHERNET TRANSMISSION SO IT CAN BE USED BY MANY DIFFERENT COMPANIES AND ORGANIZATIONS TO SEND DATA HOSPITALS SCHOOLS STATE AND LOCAL GOVERNMENTS WILL BE ABLE TO MOVE BIG DATA FILES AROUND AND TAKE ADVANTAGE OF THE ALREADY DEPLOYED CABLE NETWORK SAID EDWARD DELANEY MARKETING OPERATIONS MANAGER FOR DIGITAL CHANNEL FOR EXAMPLE A RADIOLOGIST COULD SEND A HIGHQUALITY XRAY IMAGE TO A DOCTOR'S OFFICE IN ORDER TO DISCUSS THE ANALYSIS OF A PROBLEM SUCH HIGHQUALITY IMAGES CAN'T BE SENT BY FAX MACHINES CABLEVISION DECLINED TO DISCLOSE PRICING PLANS BUT ANALYSTS SAID TRANSMISSION COSTS ARE LIKELY TO BE MUCH LOWER THAN PAYING FOR A DEDICATED DATA LINE FROM THE LOCAL TELEPHONE COMPANY THE BOX THAT CONNECTS A BUILDING'S ETHERNET TO THE CABLE COSTS 6000 MAKING IT TOO EXPENSIVE FOR HOME USE TODAY WILT HILDENBRAND VICE PRESIDENT TECHNOLOGY FOR CABLEVISION SAID THE TARGET IN THE NEXT SIX TO 18 MONTHS IS TO DRIVE THE COST DOWN TO THE RESIDENTIAL LEVEL ENABLING HOME SHOPPING AND OTHER INTERACTIVETV USES 9306070055 930607 FIRST MORTGAGE TO POST SHARP RISE IN 4THPERIOD PROFIT BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL DIAMOND BAR CALIF FIRST MORTGAGE CORP EXPECTS TO POST NET INCOME OF NEARLY 14 MILLION OR ABOUT 29 CENTS A SHARE FOR THE FISCAL FOURTH QUARTER ENDED MARCH 31 CLEMENT ZIROLI CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THAT COMPARES WITH YEAREARLIER NET INCOME OF 656000 OR 18 CENTS A SHARE ON FEWER SHARES LATEST FOURTHQUARTER RESULTS ARE ON 47 MILLION SHARES OUTSTANDING AFTER AN INITIAL PUBLIC OFFERING LAST SPRING COMPARED WITH 38 MILLION SHARES IN THE YEAREARLIER FOURTH QUARTER FOR THE FULL FISCAL YEAR FIRST MORTGAGE HAD NET INCOME OF ABOUT 53 MILLION OR 111 A SHARE COMPARED WITH 27 MILLION OR 72 CENTS A SHARE IN FISCAL 1992 MR ZIROLI SAID IN AN INTERVIEW HE ADDED THAT HE IS COMFORTABLE WITH ANALYSTS' ESTIMATES THAT FIRST MORTGAGE WILL EARN BETWEEN 125 AND 130 A SHARE IN THE CURRENT FISCAL YEAR MR ZIROLI ATTRIBUTED THE GROWTH TO THE COMPANY'S CONTINUED FOCUS ON MORTGAGE LENDING FOR LOWER AND MODERATECOST HOUSING HE EXPECTS THE COMPANY'S TOTAL MORTGAGE LENDING TO INCREASE TO BETWEEN 700 MILLION AND 750 MILLION IN THE CURRENT FISCAL YEAR FROM 500 MILLION LAST YEAR LAST MONTH WAS OUR BEST MONTH EVER IN CLOSINGS WITH 615 MILLION IN NEW LOANS FOR THE MONTH HE SAID FIRST MORTAGAGE HAS A TOTAL OF 17 OFFICES THREE OF WHICH SPECIALIZE IN REFINANCINGS AND MR ZIROLI HOPES TO OPEN ANOTHER TWO OR THREE BRANCH OFFICES THIS YEAR ALTHOUGH REFINANCINGS ACCOUNT FOR ABOUT 60 OF THE COMPANY'S TOTAL BUSINESS ITS RETAIL BRANCHES ARE EXPERIENCING STRONG GROWTH IN NEW MORTGAGES INTEREST RATES CAN GO UP A LITTLE BIT AND IT WON'T AFFECT US MUCH HE SAID THE COMPANY CURRENTLY SERVICES ABOUT 135 BILLION WORTH OF LOANS AND MR ZIROLI HOPES TO INCREASE THAT AMOUNT TO BETWEEN 3 BILLION AND 4 BILLION WITHIN THE NEXT FIVE YEARS FIRST MORTGAGE SERVICES ALL LOANS IT ORIGINATES FIRST MORTGAGE'S CAPITAL EXPENDITURES GREW TO NEARLY 700000 LAST YEAR WITH THE ADDITION OF A NEW COMPUTER SYSTEM BUT MR ZIROLI SAID HE EXPECTS THAT AMOUNT TO DECREASE TO ABOUT 100000 THIS YEAR 9306070054 930607 BUSINESS BRIEF BENSON EYECARE CORP DEFINITIVE AGREEMENT SIGNED FOR BONNEAU COS PURCHASE BENSON EYECARE CORP SAID IT SIGNED A DEFINITIVE PACT TO ACQUIRE BONNEAU COS FOR 208 MILLION IN CASH AND STOCK BENSON BASED IN NEW YORK SAID THE ACQUISITION WILL CLOSE FOLLOWING THE COMPLETION OF ITS OFFERING OF 35 MILLION COMMON SHARES BENSON WHICH SELLS EYEGLASSES AND EYECARE PRODUCTS SAID FRIDAY IT HAD FILED A REGISTRATION STATEMENT FOR THE PUBLIC OFFERING PLUS AN UNDERWRITERS' OVERALLOTMENT OF 525000 SHARES BENSON INTENDS TO USE 163 MILLION OF THE NET PROCEEDS TO PAY THE CASH PORTION OF THE BONNEAU ACQUISITION PRICE THE BALANCE OF THE PRICE WILL CONSIST OF 2 MILLION IN UNREGISTERED BENSON SHARES AND UP TO 25 MILLION TO BE PAID IN BENSON STOCK BASED ON EARNINGS OVER A THREEYEAR PERIOD BONNEAU BASED IN DALLAS DISTRIBUTES BRANDNAME READYTOWEAR EYEGLASSES 9306070053 930607 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED TWO NEW LISTINGS BOTH INITIAL PUBLIC OFFERINGS THE NATIONAL MARKET SYSTEM OF THE OVERTHECOUNTER MARKET ANNOUNCED 13 NEW LISTINGS INCLUDING FOUR INITIAL PUBLIC OFFERINGS AND THE AMERICAN STOCK EXCHANGE ANNOUNCED TWO NEW LISTINGS THE BIG BOARD SAID IT BEGAN TRADING A PAIR OF INITIAL PUBLIC OFFERINGS ALLSTATE CORP NORTHBROOK ILL AN INSURANCE CONCERN UNDER ALL AND FACTORY STORES OF AMERICA INC SMITHFIELD NC UNDER FAC NATIONAL ASSOCIATION OF SECURITIES DEALERS INC ADDED THE FOLLOWING INITIAL PUBLIC OFFERINGS TO ITS NATIONAL MARKET SYSTEM LISTINGS HOLLYWOOD CASINO CORP DALLAS A CASINO OPERATOR UNDER HWCC SIGNAL TECHNOLOGY CORP SUNNYVALE CALIF A DESIGNER DEVELOPER AND MAKER OF ELECTRONIC COMPONENTS UNDER STCX NORTHSTAR HEALTH SERVICES INC PITTSBURGH A PROVIDER OF THERAPY SERVICES ON A CONTRACTUAL BASIS TO HEALTH CARE INSTITUTIONS UNDER NSHS THERAPEUTIC DISCOVERY CORP PALO ALTO CALIF A DEVELOPER OF PHARMACEUTICAL PRODUCTS UNDER TDCZV THERAPEUTIC DISCOVERY WAS FORMED BY A DISTRIBUTION TO SHAREHOLDERS OF ALZA CORP THE NATIONAL MARKET SYSTEM ALSO BEGAN TRADING THE FOLLOWING ISSUES WHICH FORMERLY TRADED ON THE NASDAQ SMALLCAP MARKET THE COMMON AND SERIES A PREFERRED SHARES OF IVF AMERICA INC GREENWICH CONN A MANAGER OF CLINICAL FACILITIES WHICH PROVIDE REPRODUCTIVERELATED ASSISTANCE UNDER IVFA AND IVFAP CHATTAHOOCHEE BANCORP INC MARIETTA GA A BANK HOLDING COMPANY UNDER CHBC CAMBRIDGE TECHNOLOGY PARTNERS MA INC CAMBRIDGE MASS AN INFORMATION SOFTWARE AND TECHNOLOGY CONSULTING FIRM UNDER CATP CLINICOM INC BOULDER COLO A INFORMATION SYSTEMS CONCERN DEDICATED TO HOSPITALS UNDER CLIN ALCIDE CORP NORWALK CONN A RESEARCHER AND DEVELOPER OF CHEMICAL COMPOUNDS UNDER ALCD CARE ENTERPRISES INC TUSTIN CALIF AN OPERATOR AND MANAGER OF NURSING AND REHABILITATION CENTERS AND HOME HEALTH AGENCIES UNDER CREIQ THE FOLLOWING TWO ISSUES FORMERLY TRADED ON THE PINK SHEETS AND WERE APPROVED FOR DESIGNATION ON THE NATIONAL MARKET SYSTEM CITIZENS BANCSHARES INC SALINESVILLE OHIO A BANK HOLDING COMPANY UNDER CICS AND METRO FINANCIAL CORP ATLANTA A BANK HOLDING COMPANY UNDER MFIN DOVATRON INTERNATIONAL INC LONGMONT COLO A SPINOFF OF DOVER CORP AND ELECTRONICS MANUFACTURER WILL TRADE ON THE NATIONAL MARKET SYSTEM UNDER DOVT IT FORMERLY TRADED ON THE NASDAQ SMALLCAP MARKET THE AMERICAN STOCK EXCHANGE BEGAN TRADING THE FOLLOWING TWO LISTINGS FINANCIAL FEDERAL CORP NEW YORK A FINANCIAL SERVICES COMPANY UNDER FIF AND CALTON INC MANALAPAN NJ A HOME BUILDER AND MARKETER UNDER CNWI FINANCIAL FEDERAL TRADED OVERTHECOUNTER AND CALTON PREVIOUSLY TRADED ON THE NEW YORK STOCK EXCHANGE THE AMERICAN STOCK EXCHANGE ALSO BEGAN TRADING LONGTERM EQUITY ANTICIPATION SECURITIES ON NOVELL INC PROVO UTAH THE CHICAGO BOARD OPTIONS EXCHANGE SAID IT BEGAN TRADING OPTIONS ON THE FOLLOWING ISSUES ATMEL CORP SAN JOSE CALIF BOOMTOWN INC VERDI NEV IDB COMMUNICATIONS GROUP INC CULVER CITY CALIF WHEELINGPITTSBURGH CORP WHEELING W VA GENERAL DATACOMM INDUSTRIES INC MIDDLEBURY CONN GREYHOUND LINES INC DALLAS HEALTH PROFESSIONALS INC FORT LAUDERDALE FLA NABORS INDUSTRIES INC HOUSTON WEATHERFORD INTERNATIONAL INC HOUSTON 9306070052 930607 CONNECTICUT UNVEILS NEW TAX PACKAGE AIMED AT STEMMING FURTHER JOB LOSSES BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL HARTFORD CONN IN A BID TO KEEP JOBS WITHIN ITS BORDERS THE CONNECTICUT GOVERNOR'S OFFICE PUT TOGETHER A 32 MILLION TAX PACKAGE LARGELY TO STAVE OFF ANOTHER 2300 LAYOFFS AT JETENGINE MAKER PRATT & WHITNEY THE PACKAGE REPRESENTED CONNECTICUT'S STRONGEST EFFORT YET TO RETAIN JOBS WITHIN THE STATE WHOSE ECONOMY HAS BEEN BATTERED BY A SLUGGISH INSURANCE INDUSTRY AND CUTBACKS IN DEFENSE SPENDING CONNECTICUT IS THE HOME OF MANY INSURANCE COMPANIES AND DEFENSE CONTRACTORS IN RECENT WEEKS THE STATE HAS STRUCK ARRANGEMENTS WITH DUN & BRADSTREET CORP AND UNITED PARCEL SERVICE TO KEEP JOBS IN CONNECTICUT BUT WHILE EARLIER DEALS TOOK PLACE WITHIN EXISTING STATE PROGRAMS THE BID TO PLACATE PRATT & WHITNEY A UNIT OF UNITED TECHNOLOGIES CORP AND ONE OF THE STATE'S LARGEST EMPLOYERS RESULTED IN A MAJOR REVAMPING OF THE STATE'S TAX CREDIT SYSTEM AND CHANGES IN WORKERS' COMPENSATION LAW PRATT & WHITNEY SAID ON APRIL 14 THAT IT WOULD MOVE AT LEAST 2300 JOBS OUT OF CONNECTICUT IF IT COULD NOT STRIKE SOME KIND OF BARGAIN WITH THE STATE AND THE INTERNATIONAL ASSOCIATION OF MACHINISTS WHICH REPRESENTS MANY PRATT WORKERS OUR HISTORY IS HERE AND WE HAVE A MAJOR INVESTMENT IN OUR FACILITIES AND PEOPLE HERE AND WE'D LIKE TO STAY HERE SAID A PRATT & WHITNEY SPOKESMAN THIS PACKAGE IS A VERY POSITIVE STEP AND IT BENEFITS NOT JUST PRATT & WHITNEY BUT ALL OF HIGHTECH AND THE AEROSPACE INDUSTRY ONCE THE LARGEST EMPLOYER IN THE STATE PRATT & WHITNEY HAS SHRUNK ITS WORK FORCE SUBSTANTIALLY IN THE PAST FEW YEARS REFLECTING THE AEROSPACE INDUSTRY'S WOES AT THE END OF 1992 PRATT & WHITNEY HAD 23073 WORKERS FOLLOWING A STREAM OF LAYOFFS INCLUDING NEARLY 4000 IN THE PAST SIX MONTHS THE COMPANY'S WORK FORCE HAS FALLEN TO 16800 WHAT WE TRIED TO DO WAS LOOK AT THE ISSUES RAISED BY PRATT & WHITNEY AND ADDRESS THEM IN A GENERIC WAY SAID A SPOKESWOMAN FOR GOV LOWELL P WEICKER JR OUR PLAN WAS TO FASHION A GENERAL APPROACH THAT WE COULD APPLY TO SEVERAL COMPANIES THE GOVERNMENT PACKAGE STILL REQUIRES A NEW AGREEMENT BETWEEN THE MACHINISTS UNION AND PRATT & WHITNEY THE COMPANY IS SEEKING WAGE CONCESSIONS WORKRULE CHANGES AND AN EXTENSION OF THE CURRENT CONTRACT UNDER TERMS OF THE STATE'S PACKAGE THE RESEARCH AND DEVELOPMENT TAX CREDIT WILL BE CHANGED TO OFFER INCREMENTALLY INCREASING CREDITS UP TO 6 FOR SPENDING OF MORE THAN 200 MILLION THE STATE ALSO SAID A COMPANY COLLECTING THE 6 TAX CREDIT WOULD LOSE PART OF ITS CREDIT IF MORE THAN 2 OF ITS WAGE BASE MOVED TO ANOTHER STATE THE STATE ALSO PLANS TO REDUCE THE STATE CORPORATE TAX RATE NOW 115 TO 10 OVER THE NEXT FOUR YEARS FURTHER ENHANCEMENTS INCLUDE A 3 MILLION ANNUAL GRANT FOR EACH OF THE NEXT FOUR YEARS THAT WOULD PAY FOR EACH PRATT & WHITNEY WORKER TO RECEIVE TRAINING IN JAPANESE MANUFACTURING METHODS THAT ALLOW FOR INCREASED PRODUCTIVITY AND THE STATE PASSED A NEW WORKERS' COMPENSATION LAW FRIDAY THAT WOULD RESULT IN A 19 SAVING IN WORKER'S COMPENSATION COSTS THE GOVERNOR'S OFFICE SAID 9306070051 930607 BUSINESS BRIEF KANSAS CITY SOUTHERN INDUSTRIES INC CONCERN SAYS ITS ACQUISITION OF MIDSOUTH CLEARED BY ICC KANSAS CITY SOUTHERN INDUSTRIES INC SAID THE INTERSTATE COMMERCE COMMISSION APPROVED THE RAILROAD HOLDING COMPANY'S ACQUISITION OF MIDSOUTH CORP EFFECTIVE IMMEDIATELY THE ACQUISITION WHICH IS EXPECTED TO CLOSE LATER THIS MONTH REPRESENTS A MAJOR DEVELOPMENT IN THE RAILROAD INDUSTRY IN THAT IT WILL LEAD TO SIGNIFICANTLY REDUCED SHIPPING TIME OF TRANSCONTINENTAL TRAFFIC KANSAS CITY SOUTHERN SAID THE MIDSOUTH TRACKAGE WILL PERMIT KANSAS CITY SOUTHERN TO AGGRESSIVELY COMPETE IN THE RAPIDLY GROWING TRANSCONTINENTAL INTERMODAL MARKET THE COMPANY SAID KANSAS CITY SOUTHERN HISTORICALLY HAS BEEN A PRIMARILY NORTHSOUTH ROUTE TERMINATING AT THE GULF OF MEXICO KANSAS CITY SOUTHERN IS BASED IN KANSAS CITY MO MIDSOUTH IS BASED IN JACKSON MISS UNDER THE AGREEMENT MIDSOUTH HOLDERS WILL RECEIVE 2050 FOR EACH OF THEIR SHARES KANSAS CITY SOUTHERN CURRENTLY HOLDS ABOUT A 40 STAKE IN MIDSOUTH THE ACQUISITION WILL BE FINANCED WITH EXISTING FUNDS AND A LINE OF CREDIT 9306070050 930607 WHAT'S NEWS WORLDWIDE THE UN DEMANDED PUNISHMENT FOR THE SLAYERS OF 22 PEACEKEEPERS IN SOMALIA THE SECURITY COUNCIL UNANIMOUSLY CALLED FOR THE ARREST AND TRIAL OF THE GUNMEN WHO AMBUSHED THE UN PEACEKEEPERS KILLING AT LEAST 22 PAKISTANI SOLDIERS AND WOUNDING THREE AMERICANS SATURDAY'S ATTACK IN MOGADISHU SOMALIA'S CAPITAL WAS THE BLOODIEST ON UN PEACEKEEPERS SINCE 1961 WHEN 44 WERE KILLED IN THE CONGO AS MANY AS 23 SOMALIS DIED IN THE SHOOTINGS THE FIGHTING CRIPPLED HUMANITARIAN EFFORTS AS DOZENS OF UN RELIEF WORKERS WERE EVACUATED THE CLASHES BROKE OUT AS UN TROOPS INSPECTED WEAPONS WAREHOUSES CONTROLLED BY CLAN LEADER AIDID THE UN SPECIAL ENVOY TO SOMALIA SAID AIDID APPEARED TO BE RESPONSIBLE FOR THE KILLINGS INTERIOR SECRETARY BABBITT HAS BECOME THE FRONTRUNNER TO BE THE SUPREME COURT NOMINEE IT IS EXPECTED THAT CLINTON WILL NOMINATE BABBITT FOR THE HIGH COURT POST EARLY THIS WEEK SPAIN'S RULING SOCIALISTS WON A PLURALITY OF THE 350 SEATS IN PARLIAMENT'S LOWER HOUSE ACCORDING TO LATE ELECTION RESULTS WITH 99 OF THE VOTES TALLIED PRIME MINISTER GONZALEZ'S PARTY HAD 38 OF THE VOTE COMPARED WITH 35 FOR THE CONSERVATIVE POPULAR PARTY THE LEADER OF THE POPULAR PARTY AZNAR SAID HE WAS PLEASED BY HIS PARTY'S SHOWING A HUMANRIGHTS ADVOCATE WAS SWORN IN AS GUATEMALA'S PRESIDENT AFTER THE MILITARY PERMITTED CONGRESS TO HOLD A SPECIAL VOTE TO CHOOSE HIM SATURDAY'S ELECTION OF RAMON DE LEON CARPIO RESTORED DEMOCRATIC RULE FOUR DAYS AFTER THE ARMY'S OUSTER OF PRESIDENT SERRANO BUT IT WAS STILL UNCLEAR WHETHER THE MILITARY WOULD BACK DE LEON CARPIO TEXAS REPUBLICAN HUTCHISON WON THE US SENATE SEAT VACATED BY TREASURY SECRETARY BENTSEN HUTCHISON THE TEXAS STATE TREASURER WHO CAMPAIGNED AGAINST NEW TAXES DEFEATED SEN BOB KRUEGER A DEMOCRAT WHO HAD BEEN APPOINTED TO FILL THE SEAT TEMPORARILY HUTCHISON CAPTURED 68 OF THE VOTE IN SATURDAY'S ELECTION BOSNIAN SERB GUNNERS POUNDED GORAZDE FOR THE 11TH DAY AND UN OFFICIALS SAID THEY ARE AT THE SERBS' MERCY IN EFFORTS TO REACH THE MUSLIM ENCLAVE THE STATEMENT CAME DESPITE A UN SECURITY COUNCIL RESOLUTION ADOPTED FRIDAY THAT WOULD COMMIT UP TO 10000 ADDITIONAL TROOPS TO GUARD GORAZDE AND FIVE OTHER MUSLIM ENCLAVES CAMBODIA'S POSTELECTION CRISIS DEEPENED AFTER AN ABORTIVE ATTEMPT TO UNITE THE TWO MAIN FACTIONS UNDER PRINCE SIHANOUK A TRANSITIONAL GOVERNMENT FELL APART WITHIN HOURS LAST WEEK LIBERIAN REBELS SLAUGHTERED 300 REFUGEES AT AN ABANDONED FIRESTONE RUBBER PLANTATION OUTSIDE MONROVIA IN AN ORGY OF KILLING AND MUTILATION ACCORDING TO A UN ENVOY WHO WITNESSED THE ATTACK THE US DISCLOSED THAT IT IS CONSULTING WITH THE UN ON THE POSSIBILITY OF CLAMPING AN OIL AND TRADE EMBARGO ON HAITI TO FORCE THE MILITARYBACKED REGIME TO RESTORE DEMOCRACY UNDERSECRETARY OF STATE WHARTON DISCUSSED THE MOVE AT A MEETING OF THE ORGANIZATION OF AMERICAN STATES RUSSIAN HARDLINERS DENOUNCED PRESIDENT YELTSIN'S HANDLING OF A CONSTITUTIONAL ASSEMBLY AS DICTATORIAL AND SOME THREATENED TO TAKE NO FURTHER PART IN THE MEETING THAT BEGAN SATURDAY AT LEAST SIX PEOPLE DIED WHEN SOME 200 ILLEGAL CHINESE IMMIGRANTS DIVED INTO THE CHILLY WATERS OFF NEW YORK CITY AND TRIED TO SWIM ASHORE AFTER THEIR FREIGHTER RAN AGROUND AS IT WAS TRYING TO SMUGGLE THE IMMIGRANTS INTO THE US US HEALTH OFFICIALS SAID NEW TEST RESULTS SUPPORT A THEORY THAT A MYSTERIOUS DEADLY DISEASE AFFECTING MAINLY NAVAJOS MAY BE CAUSED BY A VIRUS IN RODENT DROPPINGS TESTS OF THREE VICTIMS SHOWED THEY HAD ANTIBODIES TO THE VIRUS THE ILLNESS HAS KILLED 11 PEOPLE IN NEW MEXICO AND ARIZONA ITALY'S MAJOR PARTIES SUFFERED SETBACKS IN NATIONWIDE MAYORAL RACES YESTERDAY ACCORDING TO EXIT POLLS THE ELECTIONS IN 122 CITIES AND MORE THAN 1000 SMALL TOWNS MARKED THE FIRST TIME THAT ITALIANS DIRECTLY CAST BALLOTS FOR MAYORS SERGI BRUGUERA OF SPAIN WON THE FRENCH OPEN MEN'S TENNIS TITLE DEFEATING DEFENDING CHAMPION JIM COURIER OF THE US THREE SETS TO TWO ON SATURDAY GERMANY'S STEFFI GRAF BEAT MARY JOE FERNANDEZ OF THE US TWO SETS TO ONE TO WIN THE WOMEN'S TITLE 9306070049 930607 HEARD ON THE STREET TELEVISA'S EMPIRE IN MEXICO FACES CHALLENGE AS GOVERNMENT PREPARES TO SELL TV NETWORKS BY MATT MOFFETT STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY WILL MEXICO'S TV TIGER MAUL AN UPSTART COMPETITOR OR WILL THE NOVICE TEAR UP THE TIGER WITH COMPETITION ABOUT TO HEAT UP IN MEXICAN TELEVISION BIG US INVESTORS ARE BETTING ON THE TIGER A FAMILIAR MONICKER FOR EMILIO AZCARRAGA CHAIRMAN OF MEXICO'S LONGDOMINANT TELEVISION COMPANY GRUPO TELEVISA TELEVISA'S AMERICAN DEPOSITARY RECEIPTS HAVE RISEN MORE THAN 50 IN PRICE SINCE THE COMPANY'S DECEMBER 1991 INITIAL OFFERING EVEN AS MEXICO'S GOVERNMENT PREPARES TO SELL TWO STATECONTROLLED TV NETWORKS TO PRIVATE INVESTORS THE PRIVATIZATION EXPECTED TO BE CONCLUDED IN JULY WILL GIVE TELEVISA ITS FIRST REAL COMPETITION IN DECADES WHILE US INSTITUTIONAL FANS OF THE STOCK HAVE MINIMIZED THE THREAT TO TELEVISA A CLOSER LOOK SUGGESTS THAT MR AZCARRAGA'S EMPIRE MAY BE MORE VULNERABLE TO COMPETITION THAN IS WIDELY BELIEVED TELEVISA'S VERY EXPENSIVE AT THE CURRENT PRICE AND I WOULD CERTAINLY BE CAUTIOUS UNTIL THE COMPETITIVE SITUATION IS BETTER DEFINED SAYS JEAN VAN DE WALLE CHIEF OF THE EMERGING MARKETS PORTFOLIO AT ALLIANCE CAPITAL MANAGEMENT HE THINKS TELEVISA IS 10 TO 15 OVERPRICED AT RECENT USQUOTED PRICES OF AROUND 38 3/8 FOR THE ADRS EACH DENOTING TWO SERIES L SHARES TELEVISA'S STOCK IS TRADING AT 256 TIMES TRAILING 12MONTH EARNINGS THAT'S ROUGHLY TWICE THE PRICE/EARNINGS MULTIPLE OF THE MEXICAN STOCK MARKET OVERALL AND CLOSE TO THE MULTIPLE OF SOME INTERNATIONAL MEDIA COMPANIES THAT HAVE LONG GRAPPLED WITH COMPETITION INVESTORS HAVE PAID A PREMIUM FOR TELEVISA BECAUSE OF STRONG RECENT EARNINGS AND EXPECTATIONS FOR MORE IN THE WAKE OF THE FIRST QUARTER'S 138 RISE IN NET INCOME DUE IN PART TO NEW ACQUISITIONS MANY ANALYSTS PROJECT EARNINGS GROWTH OF 30 A YEAR THROUGH THE MID1990S THIS PRESUMES THAT THE PRIVATIZATION WON'T HURT TELEVISA AND COULD EVEN HELP IT BY TELEVISA'S CALCULATIONS WIDELY ACCEPTED ON WALL STREET THE STATE NETWORKS RECEIVE 20 OF ALL TV ADVERTISING REVENUE WHILE ATTRACTING ONLY 5 OF THE AUDIENCE THE DISPARITY REFLECTS THE STATE NETWORK'S POLITICAL CLOUT ASSERTS TELEVISA PRIVATIZATION WILL LEVEL THE PLAYING FIELD TELEVISA ADDS IT'S NOW CLEAR HOWEVER THAT TELEVISA OVERESTIMATED THE STATE NETWORKS' REVENUE SHARE AND PROBABLY UNDERESTIMATED THEIR AUDIENCE SHARE THE STATE CHANNELS WILL CAPTURE JUST 117 OF ALL TV AD REVENUE IN 1993 ACCORDING TO A VALUATION PREPARED FOR THE GOVERNMENT BY DONALDSON LUFKIN & JENRETTE THIS YEAR'S STATE SHARE IS SIGNIFICANTLY HIGHER THAN THAT OF PAST YEARS THE GOVERNMENT SAYS MOREOVER THE STATE NETWORKS RECORDED A 151 AUDIENCE SHARE IN ANOTHER OUTSIDE SURVEY THAT INCLUDED TELEVISA'S TWO LEADING NETWORKS CHANNELS 2 AND 5 THE SURVEY EXCLUDED TWO SMALLER TELEVISA NETWORKS ALL OF THIS SUGGESTS THAT TELEVISA MAY NOT HAVE AS BIG A CUSHION AGAINST COMPETITION AS IT HAS SUGGESTED EVEN TODAY THERE ARE SIGNS THAT TELEVISA HAS LOST SOME OF ITS ALLURE FOR ADVERTISERS WHO IN RECENT YEARS WERE FORCED TO SWALLOW TRIPLEDIGIT RATE INCREASES PAYABLE A YEAR IN ADVANCE THE VOLUME OF ADVERTISING ON TELEVISA'S DOMESTIC NETWORKS FELL ABOUT 5 IN 1992 MARKING THE SECOND STRAIGHT YEARLY DECLINE NOTES THE MEXICAN INVESTMENT HOUSE PROBURSA TELEVISA VICE CHAIRMAN FERNANDO DIEZ BARROSO AZCARRAGA SAYS THAT VOLUME DECREASES AREN'T WORRISOME AS LONG AS AD REVENUE RISES WHICH IT DID 16 IN 1992 BECAUSE OF PRICE INCREASES ALSO AD VOLUME WAS UP SHARPLY IN THE 1993 FIRST QUARTER STILL TELEVISA MUST SHOW IT CAN INCREASE VOLUME AND RATES CONSISTENTLYAND WITH COMPETITION ONE COMPLICATING FACTOR IS TELEVISA'S IMPERIOUS CORPORATE CULTURE AN INTANGIBLE NEGATIVE ASSET IN THE WORDS OF ALLIANCE CAPITAL'S MR VAN DE WALLE A LOT OF ADVERTISERS OUT THERE WOULD BEND OVER BACKWARDS TO WORK WITH A COMPETING NETWORK HE SAYS IN A RECENT PROFANITYLACED NEWS CONFERENCE EMILIO AZCARRAGA MANAGED TO INSULT JUST ABOUT EVERYBODY HAVING ANYTHING TO DO WITH MEXICAN TV INCLUDING HIS OWN AUDIENCE WHILE SUCH HAUGHTINESS COULD COME BACK TO HAUNT MR AZCARRAGA WITH THE DAWNING OF COMPETITION HE STILL WILL BE THE MAJOR PLAYER IN MEXICO TV FOR A WHILE THE PRIVATIZED NETWORKS WILL STRUGGLE TO FIND SPANISHLANGUAGE PROGRAMMING WHICH TELEVISA HAS SHREWDLY BEEN TYING UP THROUGH INTERNATIONAL JOINT VENTURES TELEVISA'S INTERNATIONAL EXPANSION WHICH INCLUDES A BID TO CREATE A GLOBAL SATELLITE NETWORK AND A LATIN AMERICAN CABLE SERVICE SHOULD HELP CUSHION ANY WEAKNESS IN REVENUE AT HOME SOME THINK A LITTLE COMPETITION COULD BE HEALTHY FOR TELEVISA ESPECIALLY IF A US MEDIA COMPANY JOINS THE MEXICANS BUYING THE STATE NETWORKS THE CHANGE WILL MAKE TELEVISA MORE SERVICEORIENTED SAYS LM CAPITAL MANAGEMENT PRESIDENT LUIS MAIZEL BUT THE TIGER DISMISSES ANY SUGGESTION THAT HE SHOULD BE WORRIED AT THE PROSPECT OF AMERICANS POSSIBLY TREADING ON HIS TURF AT THE NEWS CONFERENCE HE SCOFFED AT PEOPLE WHO SAY YOU HAVE TO BE AFRAID OF THE GRINGOS 9306070048 930607 MEDIA CABLE SHOW AFFORDS GLIMPSE OF TV'S FUTURE BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO AS THE CABLE INDUSTRY'S FAITHFUL GATHER HERE FOR THEIR BIG ANNUAL TRADE SHOW THEY OFFER UP A PEEK AT THE TELEVISION FUTURE IS JUNIOR WATCHING TOO MUCH OF THE SEGA CHANNEL MAYBE THE MILITARY CHANNEL WILL GIVE HIM SOME DISCIPLINE GORGING ON THE TELEVISION FOOD NETWORK MAYBE YOU SHOULD TRY TUNING IN TO FXTV FOR FITNESS AND EXERCISE TELEVISION OVERDOSING ON GAMBLING AND THE GAMING NETWORK A CHANNEL THAT DELIVERS LOTTERY AND PARIMUTUEL RESULTS SWITCH TO RECOVERYNET DEVOTED TO RECOVERING ADDICTS AND PATIENTS NONE OF THESE NETWORKS IS EVEN ON THE AIR YET BUT A DELUGE OF NEW CABLE HOPEFULS IS TRYING TO DESCEND ON VIEWERS TO FILL THE PROMISE OF A CHANNEL EXPLOSION HERE AT THE SHOW TALK OF ELECTRONIC SUPERHIGHWAYS DIGITAL COMPRESSION AND THE SOMEDAY ERA OF 500 CHANNELS SPILLS FROM THE LIPS OF ALL THE NATIONAL CABLE TELEVISION ASSOCIATION COUNTS MORE THAN 40 NEW CHANNELS IN THE WORKS IN ADDITION TO THE 100 OR SO BASIC AND PAYTV CHANNELS ALREADY OUT THERE MANY NEWCOMERS ARE EXPECTED TO ANNOUNCE THEIR HOPEDFOR ARRIVALS TODAY BUT DESPITE ALL OF THE GRANDIOSE PLANS MOST OF THE NEW CHANNELS PROBABLY WILL HAVE TO WAIT YEARS BEFORE GETTING ON CABLE SYSTEMS NATIONWIDE UNLIMITED CHANNEL CAPACITY IS STILL A LONG TIME FROM GRACING THE LIVING ROOMS OF VIEWERS THE NEW NICHE NETWORKS KNOW BETTER THAN ANYONE THAT IT WILL BE A NEW CENTURY THE YEAR 2000 BEFORE MOST PEOPLE GET ANYTHING CLOSE TO 500 CHANNELS INDEED ONLY A THIRD OF CABLE HOMES IN THE US HAVE MORE THAN 53 CHANNELS NOW ALL OF THE NEW EQUIPMENT REQUIRED FOR THIS EXPLOSION OF CHANNEL SPACE WILL COST BILLIONS OF DOLLARS MOST CABLE OPERATORS AT THIS SHOW ARE CARPING THAT THE NEW CABLE REREGULATION LAW WILL MAKE IT ALL THE MORE DIFFICULT TO EXPAND THEIR SYSTEMS FOR NEW CHANNELS MADISON AVENUE WHICH HAS UNDERWRITTEN ALMOST EVERY PROGRAMMING INNOVATION IN TELEVISION HISTORY WON'T SPEND MUCH ON THE NEW CHANNELS BECAUSE OF THEIR TINY REACH SO MANY OF THE NEW SERVICES PROBABLY WILL COST EXTRA AT A TIME WHEN MANY AMERICANS FEEL CABLE IS ALREADY OVERPRICED SOME OF THE INDUSTRY'S BIGGEST PLAYERS THEMSELVES ARE ADDING TO THE LOGJAM FOR NEW CHANNELS LEAVING EVEN LESS ROOM FOR THE UPSTARTS TO ELBOW THEIR WAY IN IN ONE FELL SWOOP TWO WEEKS AGO ENCORE A MINIPAY TV CHANNEL CONTROLLED BY TELECOMMUNICATIONS INC SPINOFF LIBERTY MEDIA CORP ANNOUNCED SIX THEMEORIENTED PAYTV CHANNELS AS WELL AS A PAYTV MOVIE OUTLET THAT WILL AIR UNIVERSAL FILM STUDIO MOVIES BEFORE THEY ARE SHOWN IN THEATERS TODAY AT CABLE '93 THE NATIONAL SHOW CAPITAL CITIES/ABC INC'S ESPN SPORTS CHANNEL IS EXPECTED TO PROVIDE MORE DETAILS ABOUT ESPN II A PLANNED SPINOFF THAT WILL BE DEVOTED TO SPORTS NEWS FOX BROADCASTING CO A UNIT OF NEWS CORP IS EXPECTED TO FURTHER EXPLAIN ITS PLANS TO LAUNCH A NEW CABLE NETWORK AND TURNER BROADCASTING SYSTEM INC WHICH ALREADY CONTROLS CNN TBS TNT AND THE RECENTLY LAUNCHED CARTOON NETWORK WILL TELL MORE ABOUT TWO NEWLY PLANNED OFFERINGS TURNER CLASSIC MOVIES YET ANOTHER MOVIE CHANNEL AND SET FOR A MID1994 LAUNCH WILL AIR VINTAGE FILMS FROM THE COMPANY'S MGM MOVIE LIBRARY THE OTHER CHANNEL A US FEED OF CNN INTERNATIONAL WILL BE LAUNCHED LATE THIS YEAR EXPLAINING THE NEW MOVIE CHANNEL TURNER SPOKESMAN BRAD SIEGEL IN TYPICAL TURNER HYPERBOLE SAYS I WOULD CATEGORIZE THIS AS THE GREATEST MOVIE CHANNEL OF ALL TIME WITH THAT KIND OF COMPANY THE NEOPHYTE NETWORKS WAIT LIKE JETS IN LINE TO TAKE OFF AT AN AIRPORT MIKE HALE A SENIOR PARTNER IN THE HOWTO CHANNEL EXPECTED LAUNCH DATE LATE 1994 HAS ALMOST MEMORIZED THE SPEECH FROM CABLE OPERATORS AFTER THEY HEAR HIS PITCH FOR PROGRAMMING ON HOW TO FIX EVERYTHING FROM YOUR CAR TO YOUR KIDS SOME NETWORKS HAVE BEEN WAITING IN THE WINGS FOR YEARS ATV ADVERTISING TELEVISION ANNOUNCED ITS LAUNCH BACK IN 1988 WHEN TURNER OFFERED UP TNT TNT WENT ON TO BECOME ONE OF THE MOST SUCCESSFUL NEW CHANNELS IN CABLE HISTORY BUT ATV WHICH WANTS TO AIR TASTEFULLY DONE 10MINUTE COMMERCIALS BACKTOBACK AD INFINITUM STILL HASN'T MADE IT WE KNOW THERE'S NOT ENOUGH CAPACITY SAYS PAUL SALERNO WHO IS STILL TRYING TO GET ATV ON CABLE SYSTEMS WE HAVE A COMPUTER DATABASE OF EVERY SYSTEM IN THE COUNTRY TRACKING WHEN THEY REBUILD THEIR SYSTEMS HIS REVISED LAUNCH DATE BY THE END OF 1994 CABLE OPERATORS MAY BE ALL THE WARIER OF NEW CHANNELS FROM UNKNOWN PROVIDERS BECAUSE OF THE EXPECTED FINANCIAL HIT FROM NEW FEDERAL RESTRICTIONS ON CABLE RATES WHICH COULD REDUCE THE AVERAGE CABLE BILL BY 10 WE DON'T KNOW HOW THE RULES FROM THE CABLE ACT ARE GOING TO FALL OUT SAYS GLENN JONES CHIEF EXECUTIVE OFFICER OF JONES INTERCABLE INC WHO CONTENDS THE RULES ARE DESIGNED TO DISCOURAGE INVESTMENT IN UPGRADES MR JONES HIMSELF IS CURRENTLY LAUNCHING THE JONES COMPUTER NETWORK THROUGH WHICH VIEWERS CAN EARN A COMPUTER SCIENCE DEGREE MANY OF THE NEW CHANNELS WILL LIKELY BE SOLD AS ADDON SERVICES THAT WILL COST EXTRA AND WHICH AREN'T REGULATED IN THE WAY BASIC CHANNELS ARE THEY COULD BE PACKAGED IN TIERS OF FOUR TO SIX CHANNELS OR ALONE AND SOLD FOR SAY A DOLLAR EACH WE'RE BASICALLY TALKING ABOUT A NEW PARADIGM A NEW ECONOMIC MODEL FOR NEW NETWORKS SAYS LARRY GERBRANDT AN ANALYST WITH PAUL KAGAN ASSOCIATES INC THE SHEER VOLUME OF CHANNELS IN PLANNING STAGES GUARANTEES SOMETHING FOR EVERYONE TALK TV GUARANTEES ALL TALKALL DAYALL LIVE AND A CONTINUOUS PARADE OF OUTSTANDING ONAIR PERSONALITIES AND GUESTS FOR REALLY ALTERNATIVE MUSIC TO MTV THERE IS ZMUSIC A NEW NETWORK THAT WILL AIR CHRISTIAN ROCK VIDEOS HORIZONS TV COMES FROM THE PUBLIC BROADCASTING SERVICE AND OFFERS UP MORE CULTURAL PROGRAMMING WHILE RH MACY & CO HAS JUST ANNOUNCED PLANS FOR TVMACY'S A TVSHOPPING CHANNEL THAT AIMS AT ONEUPPING LESSUPSCALE RIVALS HOME SHOPPING NETWORK AND QVC THREE UNRELATED CHANNELS MAY GET MUCH OF THEIR VIEWING AND TOPICS FROM THE SAME TURF URBAN CENTERS WORLD AFRICAN NETWORK A PAYTV NETWORK THAT MAKES ITS DEBUT AT THE CABLE SHOW TODAY PROMISES TO REACH INTO BLACK URBAN MARKETS RECOVERYNET THE WELLNESS CHANNEL HOPES TO BREAK INTO BIG CITIES LIKE NEW YORK AND DETROIT AND CRIME CHANNEL WILL AIR CRIMEPREVENTION SHOWS AND ARRESTING PROGRAMS SUCH AS PRISONER 800 FEATURING INTERVIEWS WITH INMATES WHO CLAIM THEY ARE INNOCENT AND ARE LOOKING FOR WITNESSES TO INDUCE CABLE SYSTEMS TO CARRY THE CRIME CHANNEL PRESIDENT ARNIE FRANK IS OFFERING THEM TWO MINUTES OF FREE AD TIME EACH HALFHOUR IN THE CROWDED CABLE BUSINESS HE SAYS IT IS IMPORTANT TO CONVINCE THEM THAT CRIME PAYS 9306070047 930607 REVIEW & OUTLOOK EDITORIAL ASIDES OUTDOOR WORK SAN FRANCISCO IS IN THE SOUP FINANCIALLY AND MAYOR FRANK JORDAN WANTS MUNICIPAL WORKERS MAKING OVER 50000 40 OF THE PAYROLL TO TAKE A 5 CUT HE SHOULD START WITH THE CITY'S HOMELESS COORDINATOR WHO'S DUE TO RECEIVE 82711 UP FROM 55000 WHEN THE JOB WAS CREATED FIVE YEARS AGO THE LOCAL CHRONICLE NEWSPAPER REPORTS GRANTED HOWEVER THE COORDINATING HAS GROWN AT AN EVEN FASTER RATE 9306070046 930607 WHO'S NEWS NEW RJR CHAIRMAN HARPER WILL BE PAID AT LEAST 3 MILLION EMPLOYMENT PACT HAS OPTIONS TO BUY 8 MILLION SHARES CALLED ENOUGH INCENTIVE' BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CHARLES M HARPER RJR NABISCO HOLDINGS CORP'S NEW CHAIRMAN AND CHIEF EXECUTIVE WILL BE PAID AT LEAST 3 MILLION A YEAR IN HIS NEW JOB AND ALREADY HE HAS RECEIVED A HEALTHY INCENTIVE TO PROP UP RJR'S FALTERING STOCK PRICE AS PART OF HIS RECENTLY SIGNED EMPLOYMENT AGREEMENT MR HARPER RECEIVED OPTIONS TO BUY EIGHT MILLION SHARES OF RJR STOCK AT 5625 TO BE ELIGIBLE FOR THE STOCK GRANT MR HARPER HAD TO PLUNK DOWN 35 MILLION OF HIS OWN MONEY TO BUY 622222 SHARES OF RJR STOCK AT 5625 THAT IS THE PRICE AT WHICH RJR SHARES CLOSED IN NEW YORK STOCK EXCHANGE TRADING ON MAY 21 IT CERTAINLY PROVIDES ENOUGH INCENTIVE SAID A COMPANY SPOKESMAN RJR STOCK WHICH HAS DROPPED SHARPLY THIS YEAR CLOSED AT 550 FRIDAY DOWN 125 CENTS IN COMPOSITE TRADING ON THE BIG BOARD MR HARPER'S GUARANTEED SALARY AND BONUS WILL BE AT LEAST 3 MILLION A YEAR ACCORDING TO DOCUMENTS RJR FILED WITH THE SECURITIES AND EXCHANGE COMMISSION MR HARPER'S BASE SALARY IS 12 MILLION A YEAR WITH A GUARANTEED INCREASE OF AT LEAST 6 ANNUALLY THAT IS BASICALLY THE SAME COMPENSATION PACKAGE THAT LOUIS V GERSTNER JR MR HARPER'S PREDECESSOR HAD AT RJR BEFORE HE RESIGNED IN MARCH TO TAKE THE TOP JOB AT INTERNATIONAL BUSINESS MACHINES CORP FOR THE SEVEN MONTHS MR HARPER WORKS THIS YEAR AT RJR HE WILL BE PAID AT LEAST 175 MILLION MR HARPER'S EMPLOYMENT AGREEMENT RUNS THROUGH 1997 THIS FACT ALLEVIATES SKEPTICISM IN SOME QUARTERS ON WALL STREET THAT RJR HIRED THE 65YEAROLD EXECUTIVE SIMPLY FOR HIS MARQUEE VALUE IN HELPING THE COMPANY THROUGH A ROCKY PERIOD MR HARPER THE FORMER CHAIRMAN OF CONAGRA INC GREATLY INCREASED THE VALUE OF THAT COMPANY'S STOCK IN HIS 19 YEARS THERE SEPARATELY RJR RECEIVED SEC APPROVAL ON FRIDAY TO PROCEED WITH ITS LONGDELAYED PLAN TO SELL A PORTION OF ITS NABISCO FOOD GROUP TO THE PUBLIC THE OFFERING WAS DELAYED WHEN RJR WAS FORCED TO AMEND THE PLAN REDUCING THE PROPOSED DIVIDEND AMOUNT AFTER PHILIP MORRIS COS LAUNCHED A COSTLY CIGARETTEPRICE WAR THE PUBLIC OFFERING IS EXPECTED TO TAKE PLACE ON JUNE 23 OR SHORTLY THEREAFTER 9306070045 930607 MARKETING & MEDIA COX AND BELLSOUTH DISCUSS VENTURE IN ELECTRONIC ADS BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA COX ENTERPRISES INC IS IN TALKS WITH BELLSOUTH CORP TO FORM A JOINT VENTURE THAT WOULD PROVIDE CLASSIFIED ADVERTISING AND YELLOW PAGES DATA THROUGH HOME AND BUSINESS PHONES AND COMPUTERS THE VENTURE IF COMPLETED WOULD REPRESENT THE MOST HIGHPROFILE COOPERATIVE EFFORT OF ITS KIND IN TERMS OF THE SIZE OF THE COMPANIES INVOLVED MEDIA CONCERNS SUCH AS CLOSELY HELD COX A CABLETELEVISION OWNER AND NEWSPAPER PUBLISHER HAVE STEPPED UP THE PACE OF PROJECTS WITH THE REGIONAL BELL TELEPHONE COMPANIES TO PROVIDE VOICEMAIL SERVICES WITH UPTODATE NEWS SPORTS STOCK QUOTES AND WEATHER BUT THE MEDIA CONCERNS HAVE INTENTIONALLY SHIELDED THEIR COVETED CLASSIFIED ADVERTISING TRYING TO LOCK THE BABY BELLS OUT THE CONTEMPLATED COX VENTURE HOWEVER SIGNALS A MAJOR THAW IN ONE OF THE MOST DIVISIVE BATTLES BETWEEN NEWSPAPERS AND PHONE COMPANIES FOR SEVERAL YEARS THE NEWSPAPER INDUSTRY HAS LOBBIED FOR MEASURES TO PROTECT THEIR CLASSIFIED ADVERTISING FROM ELECTRONIC COMPETITION INDEED MAJOR NEWSPAPERS HAVE BEEN A PRIME PROPONENT OF LEGISLATION CURRENTLY PENDING IN CONGRESS THAT AIMS TO POSTPONE THE BABY BELLS' ENTRY INTO ELECTRONIC PUBLISHING FOR SEVERAL YEARS PASSAGE OF THAT LAW DEPENDING ON ITS FINAL FORM COULD TORPEDO THE VENTURE THE TURNAROUND AT COX IS PARTICULARLY SURPRISING GIVEN THAT THE COMPANY HAS BEEN ONE OF THE MOST VOCAL CRITICS OF TELEPHONE COMPANIES IN TEXAS ONE COX NEWSPAPER THE AUSTIN AMERICANSTATESMAN HAS HELPED TO LEAD A LOBBYING FIGHT AGAINST AN EFFORT BY SOUTHWESTERN BELL TO FREE ITSELF OF SOME STATE REGULATION AND DAVID E EASTERLY PRESIDENT OF THE NEWSPAPER DIVISION OF COX HAS SPOKEN BEFORE CONGRESS IN SUPPORT OF THE PROPOSALS TO RESTRICT THE BABY BELLS' DEALINGS IN ELECTRONIC PUBLISHING NEWS OF THE TALKS WAS REPORTED IN YESTERDAY'S ATLANTA JOURNAL AND ATLANTA CONSTITUTION BOTH OF WHICH ARE OWNED BY COX ENTERPRISES MR EASTERLY WOULDN'T CONFIRM OR DENY THE VENTURE TALKS A SPOKESMAN FOR BELLSOUTH SAID ONLY WE'VE BEEN IN CONSTANT DISCUSSIONS WITH A WIDE RANGE OF PUBLISHERS AND INFORMATION PROVIDERS BUT TWO INDIVIDUALS FAMILIAR WITH THE TALKS CONFIRMED DISCUSSIONS ON THE POSSIBLE VENTURE ARE MOVING FORWARD IT COULDN'T BE LEARNED HOW SOON A JOINT VENTURE AGREEMENT WOULD BE WORKED OUT ONE SOURCE INDICATED THAT THE TALKS WERE PRELIMINARY THE TWO ATLANTABASED COMPANIES HAVE WORKED TOGETHER IN RECENT YEARS ON PROJECTS INCLUDING A SPECIAL THREEDIGIT TELEPHONE NUMBER IN FLORIDA THROUGH WHICH COX AND BELLSOUTH CAN OFFER INFORMATION SERVICES SIMILAR TO 411 DIRECTORY ASSISTANCE SEPARATELY COX PLANS TO ACQUIRE A 12 STAKE IN A POLISH NEWSPAPER MARKING COX'S FIRST NEWSPAPER INTEREST ABROAD 9306070044 930607 TECHNOLOGY BRIEF SAGE ALERTING SYSTEMS INC COMPUTER SERVICES DIVISION PLANS TO ACQUIRE AMERIDATA SAGE ALERTING SYSTEMS INC WHICH HAS BEEN STEADILY GROWING THROUGH ACQUISITIONS BY ITS COMPUTERSERVICES SUBSIDIARY SAID THE SUBSIDIARY AGREED TO ACQUIRE AMERIDATA INC FOR AN UNDISCLOSED AMOUNT OF CASH AND STOCK THE ANNOUNCEMENT SENT STAMFORD CONNBASED SAGE ALERTING'S SHARES UP 20 FRIDAY THEY CLOSED UP 2 TO 12 IN NATIONAL OVERTHECOUNTER TRADING THE ACQUISITION EXPECTED TO BE COMPLETED BY AUG 1 IS THE NINTH BY SAGE DATACOM OF A COMPUTER SERVICES COMPANY SINCE ITS FORMATION LAST SUMMER AMERIDATA CURRENTLY HAS EIGHT FULL SERVICE OFFICES NATIONWIDE JAMES K MCCLEARY THE COMPANY'S PRESIDENT SAID THE ASSOCIATION WITH SAGE DATACOM WILL PROVIDE THE RESOURCES TO ENSURE AMERIDATA'S CONTINUED EXPANSION MR MCCLEARY WILL CONTINUE AS PRESIDENT OF AMERIDATA SAGE SAID SAGE ALSO DESIGNS AND MARKETS EMERGENCY ALERTING SYSTEMS 9306070043 930607 BUSINESS BRIEF OSHMAN'S SPORTING GOODS INC BAD WEATHER PARTLY BLAMED FOR FIRM'S 1STQUARTER LOSS OSHMAN'S SPORTING GOODS INC CITING BAD WEATHER AND WEAK SALES IN CALIFORNIA REPORTED A FIRSTQUARTER NET LOSS OF 24 MILLION OR 41 CENTS A SHARE COMPARED WITH A LOSS OF 986000 OR 17 CENTS A SHARE A YEAR EARLIER THE SPORTING GOODS RETAILER SAID SALES ROSE 32 TO 642 MILLION FROM 622 MILLION A YEAR EARLIER SAMESTORE SALES IN THE PERIOD DROPPED 16 THE HOUSTONBASED COMPANY HAD ANTICIPATED STRONG RESULTS ON THE WEST COAST BECAUSE OF HEAVY SNOW BUT SAID THE SALES DIDN'T MATERIALIZE HEAVY RAINS AND GENERALLY UNSEASONAL WEATHER ALSO HURT SALES IN THE QUARTER THE COMPANY SAID OSHMAN'S FELL 25 CENTS TO 675 IN NATIONAL OVERTHECOUNTER TRADING FRIDAY 9306070042 930607 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/16 HIGH 2 7/8 LOW 2 7/8 NEAR CLOSING BID 2 15/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 305 30 TO 32 DAYS 311 33 TO 59 DAYS 313 60 TO 89 DAYS 316 90 TO 119 DAYS 322 120 TO 149 DAYS 325 150 TO 229 DAYS 335 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 319 30 DAYS 322 60 DAYS 326 90 DAYS CERTIFICATES OF DEPOSIT 261 ONE MONTH 267 TWO MONTHS 272 THREE MONTHS 288 SIX MONTHS 312 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 315 ONE MONTH 330 THREE MONTHS 350 SIX MONTHS BANKERS ACCEPTANCES 312 30 DAYS 316 60 DAYS 320 90 DAYS 326 120 DAYS 330 150 DAYS 333 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/4 3 1/8 ONE MONTH 3 5/16 3 3/16 TWO MONTHS 3 3/8 3 1/4 THREE MONTHS 3 7/16 3 5/16 FOUR MONTHS 3 1/2 3 3/8 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 5/16 THREE MONTHS 3 7/16 SIX MONTHS 3 13/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 6 GERMANY 850 JAPAN 4 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE TUESDAY JUNE 1 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 308 13 WEEKS 322 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 735 60 DAYS 744 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4125 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 730 60 DAYS 740 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 525 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 266 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9306070041 930607 BUSINESS BRIEF AMAX GOLD INC WAIHI MINE INTEREST IS SOLD TO PARTNER FOR CASH GOLD AMAX GOLD INC SAID IT RECEIVED 81 MILLION FOR ITS 3353 INTEREST IN THE WAIHI MINE IN NEW ZEALAND FROM ITS PARTNER A SUBSIDIARY OF POSEIDON GOLD LTD IN ADDITION AMAX GOLD WILL RECEIVE 15500 OUNCES OF GOLD IN SEMIANNUAL INSTALLMENTS DURING THE NEXT FIVE YEARS AND AN UNSPECIFIED AMOUNT OF CASH CONTINGENT ON AUDITS THE COMPANY SAID IT WILL RECORD A NET GAIN FROM THE AGREEMENT THE TRANSACTION ALLOWS AMAX GOLD TO REALIZE THE PROJECT'S FUTURE GAINS NOW AND TO DEVELOP OTHER GOLD MINES THE GOLDEN COLO MINING COMPANY SAID 9306070040 930607 TWO ARE CONVICTED OF INSIDER TRADING BY HOUSTON JURY BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN A RARE CRIMINAL PROSECUTION OF INSIDERTRADING ABUSES OUTSIDE NEW YORK A COMPANY AUDITOR AND HIS CLOSE FRIEND WERE CONVICTED BY A HOUSTON JURY OF TRADING ON INSIDE INFORMATION ABOUT AN IMPENDING CORPORATE MERGER THE DEFENDANTS FORMER AUDITOR EDWARD TED RUGGIERO AND CHRISTOPHER PARKER EARLIER HAD AGREED TO GIVE UP ALMOST 900000 IN PROFITS FROM TRADING OPTIONS ON STOCK IN VISTA CHEMICAL CO WHERE MR RUGGIERO WORKED THE SUBSEQUENT CRIMINAL PROSECUTION WHICH ENDED IN THE MEN'S CONVICTIONS LAST WEEK IS BELIEVED TO BE THE ONLY SUCH PROCEEDING IN THE SOUTHWEST ACCORDING TO KEVIN O'ROURKE ASSISTANT CHIEF LITIGATION COUNSEL FOR THE SECURITIES AND EXCHANGE COMMISSION FEDERAL PROSECUTORS AND THE SEC ALLEGED THAT MR RUGGIERO THEN SUPERVISOR OF INTERNAL AUDIT AT VISTA LEARNED OF THE COMPANY'S IMPENDING MERGER WITH RWE AG A GERMAN FIRM IN LATE 1990 MR RUGGIERO AND MR PARKER POKERPLAYING PALS BEGAN BUYING CALL OPTIONS AND BOTH MEN SOLD THE CONTRACTS ON THE DAY THE MERGER WAS ANNOUNCED THE SEC SAID WITHIN HOURS OF THE TRANSACTIONS THE PACIFIC STOCK EXCHANGE ALERTED THE SEC INVESTIGATORS TRACKED DOWN MR RUGGIERO AT AN AUSTIN TEXAS HOTEL AND QUESTIONED HIM ABOUT THE OPTIONS MR O'ROURKE SAID THE SEC FILED ITS CIVIL CASE AGAINST MESSRS RUGGIERO AND PARKER TWO MONTHS LATER AND THE TWO MEN SETTLED THE CASE IN APRIL 1992 WITHOUT ADMITTING ANY WRONGDOING MR RUGGIERO AGREED TO RELINQUISH 679527 IN PROFITS AND MR PARKER AGREED TO GIVE UP 210381 WITHIN DAYS OF THE SETTLEMENT A FEDERAL GRAND JURY IN HOUSTON INDICTED THE TWO MEN ON 39 SEPARATE CHARGES MR RUGGIERO'S LAWYER RICHARD B KUNIANSKY OF HOUSTON SAID HIS CLIENT WILL APPEAL HIS CONVICTION HIS TRADES WERE BASED ON INDEPENDENT ANALYSIS HE HAD PERFORMED AND NOT BASED ON ANY INSIDE INFORMATION MR KUNIANSKY SAID MR PARKER'S LAWYER DAVID GERGER SAID HE INTENDS TO ASK US DISTRICT JUDGE KENNETH HOYT FOR A NEW TRIAL BASED ON JURY MISCONDUCT MR GERGER WOULDN'T ELABORATE THE TWO MEN ARE SCHEDULED FOR SENTENCING SEPT 7 9306070039 930607 ITT CORP CLOSES SALE OF A LOAN PORTFOLIO TO GROUP OF INVESTORS NEW YORK ITT CORP SAID IT COMPLETED A PREVIOUSLY ANNOUNCED SALE OF A CONSUMER LOAN PORTFOLIO TO A GROUP LED BY A GOLDMAN SACHS & CO UNIT FOR ABOUT 17 BILLION THE 218 BILLION PORTFOLIO OF DOMESTIC UNSECURED SMALL CONSUMER LOANS WHICH WERE ADMINISTERED BY ITT CONSUMER FINANCE CORP MINNEAPOLIS WILL BE OWNED NOW BY A CONSORTIUM OF INVESTORS INCLUDING FINANCIAL SERVICES COMPANY HOUSEHOLD INTERNATIONAL INC PROSPECT HEIGHTS ILL THE GOLDMAN SACHS UNIT AND ITT WHICH ACQUIRED A 15 EQUITY STAKE IN THE CONSORTIUM ITT SAID THE PURCHASE PRICE CONTAINED 392 MILLION IN LOANS COLLECTED SINCE FEB 28 THE COMPANY ADDED IT WOULD RECORD A 95 MILLION PRETAX GAIN FROM THE SALE IN THE SECOND QUARTER BUT THE TELECOMMUNICATIONS EQUIPMENT COMPANY SAID COSTS OF FUTURE DEBT REPURCHASES LIKELY WOULD OFFSET THE GAIN 9306070038 930607 BUSINESS BRIEF CANADA POST WILL ACQUIRE 75 STAKE IN PUROLATOR NATION'S BIGGEST COURIER OTTAWA CANADA POST CORP WHICH OPERATES CANADA'S MAIL SYSTEM IS TO PURCHASE A 75 INTEREST IN THE COUNTRY'S LARGEST COURIER COMPANY PUROLATOR COURIER LTD THE INVESTMENT IS DESIGNED TO BROADEN THE BUSINESS OF THE GOVERNMENT CORPORATION WHICH IN ITS CORE LETTER MAIL OPERATIONS IS FACING GROWING COMPETITION FROM FAX COMMUNICATIONS AND OTHER FORMS OF ELECTRONIC MESSAGING THIS IS A SOUND BUSINESS MOVE IN LINE WITH CANADA POST'S MISSION TO BE A FULLSERVICE MARKETORIENTED AND PROFITABLE DISTRIBUTION BUSINESS SAID GEORGES CLERMONT THE CORPORATION'S PRESIDENT CANADA POST HAS REACHED AN AGREEMENT WITH ONEX CORP WHICH OWNS 78 OF PUROLATOR TO PURCHASE THE 75 INTEREST IN THE COURIER COMPANY FOR 55 MILLION CANADIAN DOLLARS US43 MILLION THE REMAINDER OF THE SHARES WILL BE OWNED BY ONEX THE ONTARIO MUNICIPAL EMPLOYEES RETIREMENT FUND AND PUROLATOR'S MANAGEMENT ONEX IS A TORONTO HOLDING COMPANY WITH DIVERSIFIED BUSINESS INTERESTS MOSTLY IN THE US ITS SHARES CLOSED ON THE TORONTO STOCK EXCHANGE FRIDAY AT C1250 UP 25 CENTS HARVIE ANDRE THE FEDERAL GOVERNMENT MINISTER RESPONSIBLE FOR CANADA POST WELCOMED THE PLANNED CANADA POST INVESTMENT DESPITE THE GOVERNMENT'S POLICY OF PRIVATIZING GOVERNMENT ACTIVITIES THIS IS A GOOD BUSINESS DECISION THAT MAKES SENSE FOR CANADA POST SAID MR ANDRE OTHER COURIER COMPANIES INTEND TO FIGHT THE TRANSACTION BECAUSE OF CONCERNS OVER CANADA POST'S MARKET POWER CANADA POST ALREADY OPERATES A COURIER BUSINESS AND WITH THE ACQUISITION OF PUROLATOR IT COULD DRIVE ITS COMPETITORS OUT OF BUSINESS BY PREDATORY PRICING SAID KAL TOBIAS PRESIDENT OF THE CANADIAN COURIER ASSOCIATION AN INDUSTRY TRADE GROUP MR TOBIAS SAID THE COURIER INDUSTRY INTENDS TO TAKE ITS CASE AGAINST THE ACQUISITION TO THE FEDERAL GOVERNMENT'S ANTITRUST DEPARTMENT THE DEPARTMENT SAID THAT AS A MATTER OF COURSE IT WILL REVIEW THE PLANNED TRANSACTION JOHN GUSTAVSON PRESIDENT OF THE CANADIAN DIRECT MARKETING ASSOCIATION SAID THE PLANNED ACQUISITION HAS POTENTIAL ADVANTAGES AND DISADVANTAGES HE SAID A BIG COURIER COMPANY WOULD HAVE THE RESOURCES TO DEVELOP A MORE EFFICIENT DELIVERY SYSTEM FOR CANADA BUT HE SAID HE WAS CONCERNED THAT SUCH A BIG COMPANY WOULD DICTATE PRICES MANY OF THE ASSOCIATION'S MEMBERS USE THE MAIL SYSTEM AND COURIERS TO DISTRIBUTE THEIR GOODS CANADA POST SAID IT DOESN'T INTEND TO MERGE ITS EXISTING COURIER BUSINESS AND THE PUROLATOR OPERATION EACH WILL OPERATE SEPARATELY WITH ITS OWN MANAGEMENT THE CORPORATION SAID 9306070036 930607 PRESIDENT OF O&Y'S US UNIT THREATENS TO QUIT UNLESS FIGHT OVER BOARD STOPS BY LARRY M GREENBERG STAFF REPORTER OF THE WALL STREET JOURNAL JOHN ZUCCOTTI THREATENED TO RESIGN AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF OLYMPIA & YORK DEVELOPMENTS LTD'S US UNIT UNLESS THE COMPANY'S CANADIAN EQUITY HOLDERS STOP SQUABBLING OVER THE MAKEUP OF A NEW BOARD FOR THE SUBSIDIARY MR ZUCCOTTI'S WARNING WHICH IS BEING TAKEN SERIOUSLY BY THE INSOLVENT REALESTATE CONCERN'S CREDITORS UNDERSCORES HOW TENUOUS ARE THE COMPANY'S EFFORTS TO STAY OUT OF US BANKRUPTCY COURT WHILE IT ATTEMPTS TO RESTRUCTURE ITS 53 BILLION IN DEBT MANY LENDERS CREDIT MR ZUCCOTTI WITH THE COMPANY'S HAVING AVOIDED A BANKRUPTCY FILING FOR THIS LONG BUT SOME LENDERS ARE LOSING PATIENCE AS THE PROLONGED LACK OF A BOARD TIES MR ZUCCOTTI'S HANDS IN RESTRUCTURING NEGOTIATIONS HIS RESIGNATION COULD PROMPT CREDITORS TO PUSH THE COMPANY TO FILE FOR CHAPTER 11 OF THE US BANKRUPTCY CODE THE CORPORATE GOVERNANCE PROCESS THAT IS CURRENTLY IN PLACE THREATENS THE FRAMEWORK FOR CONSENSUS THAT I HAVE WORKED FOR OVER A YEAR TO CREATE THIS PROCESS HAS MADE IT VIRTUALLY IMPOSSIBLE FOR ME AS CEO WITH FIDUCIARY DUTIES TO CREDITORS TO PROPERLY PERFORM MY DUTIES MR ZUCCOTTI SAID IN AN AFFIDAVIT FILED WITH THE US BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF NEW YORK FOLKS WOULD NOT BE VERY HAPPY IF MR ZUCCOTTI RESIGNED A CREDITOR SAID MR ZUCCOTTI'S CRITIQUE OF THE COMPANY'S SEEMINGLY CONFUSED STATE OF CORPORATE GOVERNANCE MAKES CLEAR THE DIFFICULTY FACING CYRUS VANCE THE FORMER SECRETARY OF STATE WHO WAS APPOINTED BY THE COURT TO BRING PEACE TO THE EMBATTLED NEW YORK CONCERN OLYMPIA & YORK COS USA MR VANCE A PARTNER AT NEW YORK LAW FIRM SIMPSON THACHER & BARTLETT IS CHARGED WITH MEDIATING BETWEEN O&Y USA'S CREDITORS AND EQUITY HOLDERS IN THE DISPUTE OVER THE COMPOSITION OF THE BOARD HE IS DUE TO MAKE A PROGRESS REPORT TO THE COURT ON THURSDAY O&Y USA HAS BEEN WITHOUT A BOARD SINCE MARCH WHEN ITS TORONTO PARENT OLYMPIA & YORK DEVELOPMENTS EMERGED FROM CANADIAN BANKRUPTCYCOURT PROTECTION THE MAIN OBSTACLE BLOCKING THE APPOINTMENT OF A NEW BOARD HAS BEEN THE INSISTENCE BY THE CANADIAN PARENT'S COURTAPPOINTED ADMINISTRATOR TO RETAIN THE RIGHT TO DISMISS THE SUBSIDIARY'S DIRECTORS CREDITORS OBJECT SAYING THIS WOULD COMPROMISE THE INDEPENDENCE OF THE BOARD IN A NEW TWIST MR ZUCCOTTI CLAIMS THAT O&Y USA'S EQUITY HOLDERS INCLUDING THE ADMINISTRATOR AND THE BIG BANK LENDERS TO THE TORONTO PARENT COMPANY LAST WEEK BACKED AWAY FROM A PREVIOUS AGREEMENT TO NAME A SEVENMEMBER BOARD INCLUDING THREE INDEPENDENT US BUSINESSMEN THAT HAD BEEN PROPOSED FOR THE JOB MR ZUCCOTTI ALSO SAID THE GOVERNANCE STRUCTURE HAS BEEN MADE MORE CONFUSING BECAUSE AUTHORITY OVER THE US SUBSIDIARY IS NOW BEING CLAIMED SEPARATELY BY THE CANADIAN ADMINISTRATOR ON THE ONE HAND AND THE TORONTO PARENT'S BANK LENDERS ON THE OTHER SUCH A SITUATION IS UNTENABLE MR ZUCCOTTI SAID IN THE COURT AFFIDAVIT UNLESS THE CORPORATE GOVERNANCE STRUCTURE IS CLARIFIED I CANNOT FUNCTION AS A CEO TO O&Y USA HE SAID THE CANADIAN ADMINISTRATOR FROM ACCOUNTING FIRM COOPERS & LYBRAND SEEMED TO DENY ANY DISAGREEMENT WITH OLYMPIA & YORK DEVELOPMENTS' BANK LENDERS THE RELATIONSHIP BETWEEN THESE PARTIES HAS BEEN CLEARLY ESTABLISHED THE ADMINISTRATOR SAID IN A BRIEF STATEMENT IN THE VERY NEAR FUTURE AND WITH THE ASSISTANCE OF CYRUS VANCE WE ARE HOPEFUL THAT ALL OUTSTANDING ISSUES RELATING TO THE GOVERNANCE OF OLYMPIA & YORK USA CAN BE RESOLVED IT SAID ANDY KENT CANADIAN COUNSEL FOR OLYMPIA & YORK DEVELOPMENTS' BANK LENDERS CONCURRED WITH THE STATEMENT BUT DECLINED TO COMMENT FURTHER WE'D LIKE NOT TO DEBATE THIS WHOLE PROCESS IN PUBLIC HE SAID ALTHOUGH O&Y USA HASN'T FILED FOR BANKRUPTCYCOURT PROTECTION SEVERAL HOLDING COMPANIES OF OLYMPIA & YORK DEVELOPMENTS THROUGH WHICH IT HOLDS THE US SUBSIDIARY ARE IN CHAPTER 11 MR ZUCCOTTI'S AFFIDAVIT WAS FILED AS PART OF THESE CASES AN INDIVIDUAL CLOSE TO THE SITUATION SAID O&Y USA IS LOSING PERSONNEL IN ITS PROPERTY LEASING AND OPERATIONS DEPARTMENTS BECAUSE OF THE CONTINUED UNCERTAINTY THE SITUATION IS UNRAVELING O&Y USA DOESN'T HAVE MUCH MORE TIME HERE THE INDIVIDUAL SAID A COMPANY SPOKESMAN CONFIRMED THAT A FEW EMPLOYEES RECENTLY LEFT AND SAID A LOT OF THE KEY STAFF IS VERY ITCHY 9306070035 930607 GLOBAL VIEW CLOSING EUROPE'S DOORS WILL HAVE A COST BY GEORGE MELLOAN SATURDAY MORNINGS AT MY LOCAL MARKET SQUARE IN BRUSSELS OFFER VISIBLE EVIDENCE OF THE DEMOGRAPHIC CHANGES THAT HAVE BECOME A MAJOR POLITICAL ISSUE IN EUROPE EVERY WEEK THE CROWD SAUNTERING AMONG THE FLOWER STALLS AND MOBILE DELICATESSENS BECOMES MORE VARIEGATED AND EXOTIC THERE ARE MOROCCANS TURKS ZAIREAN AFRICANS IN THEIR COLORFUL NATIVE DRESS RUSSIANS POLES INDOCHINESE ENGLISH AMERICANS ALL MIXING WITH THE NATIVE BELGIANS THEMSELVES EITHER FLEMISH DUTCHSPEAKING OR WALLOON FRENCHSPEAKING AT ONE CORNER OF THE SQUARE PERUVIAN MUSICIANS NOW A FAMILIAR SIGHT THROUGHOUT EUROPE TOOT THEIR PIPES AND BEAT THEIR GOATSKIN DRUMS TO ENTERTAIN SHOPPERS WITH THAT GOOD OLD ANDES MOUNTAIN MUSIC ALL THIS MAKES THE MARKET STRIKINGLY MORE COSMOPOLITAN AND COLORFUL THAN WHEN I FIRST ARRIVED IN BRUSSELS 3 1/2 YEARS AGO SHOPPERS RUB SHOULDERS IN THE INNOCENT PURSUIT OF THEIR HEARTS' DESIRES SPLASHY BOUQUETS OF HYACINTHS TASTY SLICES OF HEADCHEESE CORSETS SATURDAY MARKETS ON TOWN SQUARES THROUGHOUT THE LENGTH AND BREADTH OF EUROPE ARE PART OF THE CONTINENT'S TRADITION AND CHARM BUT EUROPE'S TRADITIONALISTS SOME TIME AGO BEGAN ASKING THEMSELVES A QUESTION IS THIS STILL EUROPE OR WITH ALL THE NEWCOMERS IS IT RAPIDLY BECOMING SOMETHING ELSE JUST A YEAR AGO ONLY FRINGE PARTIES SUCH AS THE REPUBLICANS OF GERMANY OR THE NATIONAL FRONT OF JEANMARIE LE PEN IN FRANCE TRIED TO EXPLOIT THIS CONCERN THE MAIN PARTIES ADHERED TO A QUEST FOR FURTHER ECONOMIC AND CULTURAL INTEGRATION THROUGH THE MERGER OF THE EUROPEAN COMMUNITY EC AND THE EUROPEAN FREE TRADE ASSOCIATION EFTA INTO A VAST AND WEALTHY 19NATION EUROPEAN ECONOMIC AREA EEA IMMIGRATION POLICIES WERE ON THE WHOLE LIBERAL IN PART BECAUSE EUROPE'S ECONOMIC GROWTH AND ITS AGING POPULATION DEMANDED MORE WORKERS LE PEN AND HIS ILK WERE DENOUNCED AS PAROCHIAL RACISTS THIS SUMMER THINGS ARE DIFFERENT EUROPE IS IN RECESSION WITH GREATER COMPETITION FOR JOBS ALTHOUGH MOST EUROPEANS DISDAIN THE DIRTY WORK IMMIGRANTS OFTEN DO ECONOMIC WORRIES AND THE USUAL SOCIAL ABRASION HAVE TURNED IMMIGRATION INTO A MAINSTREAM POLITICAL ISSUE TRADITIONALLY LIBERAL FRANCE WHERE THE RULING SOCIALIST PARTY WAS TRAMPLED IN THE LAST PARLIAMENTARY ELECTION HAS MADE THE MOST DRAMATIC ABOUTFACE LAST WEEK INTERIOR MINISTER CHARLES PASQUA OF THE NEW CENTERRIGHT BALLADUR GOVERNMENT TOLD LE MONDE THAT HE IS AIMING FOR ZERO IMMIGRATION A DRAFT BILL SOON TO GO BEFORE THE FRENCH ASSEMBLY WOULD TIGHTEN ENTRY RULES IN PARTICULAR CURTAILING RESIDENCE PERMITS GRANTED TRAILING SPOUSES OR FOR BROADER FORMS OF FAMILY REUNIFICATION FAMILY REUNIFICATION ACCOUNTS FOR MUCH OF EUROPE'S IMMIGRATION AND IS AN UNDERSTANDABLY SENSITIVE ISSUE FOR IMMIGRANT WORKERS IT IS AS WELL FOR HOST COMMUNITIES WHERE RESIDENTS COMPLAIN THAT THE CHILDREN OF IMMIGRANTS OVERLOAD SCHOOL SYSTEMS OR EXPAND JUVENILE DELINQUENCY ON THE SAME DAY AS MR PASQUA MADE HIS ANNOUNCEMENT EUROPEAN COMMUNITY IMMIGRATION MINISTERS MEETING IN COPENHAGEN AGREED TO TIGHTEN UP ON IMMIGRATION CONTROLS THROUGHOUT THE EC POLICE WILL HAVE MORE FREEDOM TO SEARCH OUT ILLEGAL IMMIGRANTS AND REPATRIATE THEM FAMILY REUNIFICATION PERMITS WILL BE HARDER TO GET IN GERMANY THERE WERE DEMONSTRATIONS AND RIOTS LAST WEEK TO PROTEST THE FIREBOMBING OF A TURKISH HOME IN SOLINGEN NEAR COLOGNE THAT KILLED FIVE PEOPLE A 16YEAROLD SKINHEAD HAS BEEN ARRESTED AND GERMAN PRESIDENT RICHARD VON WEIZSAECKER APPEARED AT A MEMORIAL SERVICE IN COLOGNE THURSDAY TO DEMONSTRATE THE GOVERNMENT'S CONCERN ABOUT SUCH CRIMES GOOD GERMANS EVERYWHERE FEARFUL OF A NEONAZI UPRISING HAVE FOR MONTHS NOW TURNED OUT FOR CANDLELIGHT VIGILS TO SHOW THAT THEY ARE UNSYMPATHETIC TOWARD RACISM BUT NONETHELESS THE GERMAN BUNDESTAG VOTED OVERWHELMINGLY TWO WEEKS AGO TO TIGHTEN UP THE LIBERAL CONSTITUTIONAL GUARANTEE OF POLITICAL ASYLUM WHICH ATTRACTED OVER 225000 REFUGEES TO GERMANY LAST YEAR GERMANY WILL HENCEFORTH TURN BACK SOME CLAIMANTS AT THE BORDER AND PROCESS EXISTING CLAIMS MORE RAPIDLY REPATRIATING THOSE NOT DEEMED QUALIFIED EUROPEANS OF COURSE SHARE A GLOBAL PROBLEM THAT WILL BE JUST AS FAMILIAR TO THE PEOPLE OF LOS ANGELES OR HONG KONG AS TO THE RESIDENTS OF COLOGNE AND TOULOUSE TRADITIONAL MOTIVES FOR MIGRATION POLITICAL PERSECUTION WAR POVERTY HUNGER HAVE BEEN MATCHED UP WITH IMPROVED MEANS RICH NATIONS BECKON AS NEVER BEFORE TO THE WORLD'S POOR PROMISING JOBS AND BETTER LIVES THE COLLAPSE OF THE SOVIET EMPIRE AND THE OPENING UP OF CHINA AND INDOCHINA HAVE REDUCED BARRIERS TO ESCAPE FROM COMMUNIST LANDS IN DESTINATION COUNTRIES FEW CAN KEEP TRACK OF ALL THOSE WHO ENTER ON TOURIST VISAS IN THIS AGE OF MASS MOBILITY THE SMUGGLING SKILLS LEARNED BY DRUG RUNNERS HAVE OPENED UP A NEW COMMERCE IN HUMAN CARGOES ILLEGAL MIGRANTS WHO ARE SLIPPED INTO EUROPE OR AMERICA FOR LARGE FEES A DRAFT REPORT PREPARED FOR THE MARCH MEETING OF THE TRILATERAL COMMISSION IN WASHINGTON BY DORIS MEISSNER DIRECTOR OF A CARNEGIE ENDOWMENT IMMIGRATION POLICY PROJECT NOTED THAT REFUGEES UNDER THE CARE OF THE INTERNATIONAL ASSISTANCE COMMUNITY TODAY NUMBER OVER 18 MILLION COMPARED WITH ONLY 2 MILLION IN 1970 BUT EVEN THESE ARE ONLY A SMALL PART OF THE TOTAL NUMBER OF PEOPLE IN THE WORLD TODAY WHO HAVE LEFT THEIR HOMES WITHOUT LEGAL DOCUMENTS IN SEARCH OF SAFETY OR BETTER LIVES ELSEWHERE EUROPEAN POLITICIANS FEEL THAT THEY MUST RESPOND TO THE DEMANDS OF THEIR CONSTITUENCIES BUT THEY KNOW AS WELL THE RISKS THE GERMAN GOVERNMENT IS MAKING SPECIAL EFFORTS TO AVOID OFFENDING TURKEY A NATO ALLY WHOSE STRATEGIC IMPORTANCE HAS GROWN IF ANYTHING SINCE THE END OF THE COLD WAR FRANCE IS RIGHTLY CONCERNED ABOUT THE NORTH AFRICAN FRANCOPHONE COUNTRIES SUCH AS ALGERIA FROM WHICH IT HAS ABSORBED SO MANY IMMIGRANTS ASIDE FROM LOSING THE ECONOMIC CONTRIBUTION IMMIGRANTS OFFER THERE IS LEGITIMATE CONCERN THAT SHUTTING THE DOORS WILL FURTHER WORSEN POLITICAL TRENDS IN NORTH AFRICA AND THE MIDDLE EAST WHERE ISLAMIC RADICALS ARE GAINING GROUND SOME EUROPEANS FEAR THAT THEY MAY SOME DAY FACE A NORTHSOUTH CONFRONTATION AS DANGEROUS AS THE FORMER EASTWEST STANDOFF AS THE US HAS LEARNED IT IS NOT EASY TO LOCK THE DOORS TO A VAST AREA OF COMPARATIVE RICHNESS BUT IN THE ABSENCE OF BETTER ANSWERS OF WHICH THERE ARE MANY THAT'S WHAT EUROPE IS TRYING TO DO SOME OF THE PEACEFUL SATURDAY MORNING SHOPPERS ON PLACE FLAGEY MAY SOON BE HEARING FROM THEIR LOCAL POLICE WITH ORDERS TO GO BACK WHERE THEY CAME FROM 9306070034 930607 COMMODITIES SUGAR PRICES REBOUND AS CUBA HALTS EXPORTS RUSSIA HOLDS KEY TO EXTENT OF FURTHER INCREASES BY JOSE DE CORDOBA AND WARREN GETLER STAFF REPORTERS OF THE WALL STREET JOURNAL REPORTS OF STORMRELATED DAMAGE TO CUBA'S SUGAR CROP AND TO THE NATION'S ECONOMIC INFRASTRUCTURE ARE EXPECTED TO PUT STRONG UPWARD PRESSURE ON RAW SUGAR PRICES IN THE WEEKS AHEAD TRADERS SAY CUBA THE WORLD'S LARGEST EXPORTER OF RAW SUGAR ANNOUNCED FRIDAY THAT IT WOULD BE UNABLE TO FULFILL DELIVERY CONTRACTS WITH ITS FOREIGN CLIENTS INCLUDING RUSSIA FOR THE REST OF THIS MONTH AND PROBABLY LONGER AS A RESULT OF SEVERE STORMS THAT LASHED THE ISLAND EARLY LAST WEEK ALBERTO BETANCOURT ROA HEAD OF THE STATE'S SUGAR MARKETING COMPANY CUBAZUCAR SAID CUBA WAS DECLARING FORCE MAJEURE THE INABILITY TO MEET CONTRACTS BECAUSE OF FORCES BEYOND ITS CONTROL THE DECLARATION IS FOR ALL OUR CLIENTS NO ONE IS EXCLUDED MR BETANCOURT ROA TOLD THE REUTER NEWS SERVICE NEWS OF HAVANA'S FORCE MAJEURE DECLARATION TRIGGERED A SHARP RISE IN SUGAR FUTURES PRICES FRIDAY ON NEW YORK'S COFFEE SUGAR & COCOA EXCHANGE WITH THE ACTIVE JULY CONTRACT SETTLING 050 CENT HIGHER AT 1096 CENTS A POUND BEFORE THE ANNOUNCEMENT WORLD SUGAR PRICES HAD BEEN DRIFTING LOWER ON MARKET PERCEPTIONS OF AMPLE WORLD SUPPLIES ON THURSDAY FOR INSTANCE THE JULY CONTRACT HAD TRADED AT 1028 CENTS A POUND THE LOWEST LEVEL SINCE MARCH 12 AN EARLIER ANNOUNCEMENT LATE LAST MONTH BY MR BETANCOURT ROA THAT CUBA'S CROP WOULD BE ONLY 42 MILLION TONS THE LOWEST LEVEL IN 30 YEARS AND A 40 DECREASE FROM THE SEVEN MILLION TONS CUBA REPORTED IT HARVESTED LAST YEAR HAD LEFT THE SUGAR FUTURES MARKET UNFAZED BUT MARKET SENTIMENT CHANGED WITH FRIDAY'S REPORT OF A SUSPENSION OF ALL FOREIGN CONTRACTS INCLUDING THE FUELSTARVED ISLAND'S CORNERSTONE AGREEMENT TO TRADE 15 MILLION TONS OF SUGAR FOR TWO MILLION TO THREE MILLION TONS OF RUSSIAN CRUDE OIL TRADERS SAID RUSSIA THE BIGGEST CLIENT FOR CUBAN SUGAR AND AMONG THE TOP IMPORTERS OF RAW SUGAR WORLDWIDE NOW WILL HAVE TO ENTER INTO NEW AGREEMENTS WITH OTHER SUPPLIERS MOST LIKELY BRAZIL AND GUATEMALA TO MAKE UP THE DIFFERENCE AS A RESULT WE ULTIMATELY ARE GOING TO SEE A CERTAIN AMOUNT OF TIGHTNESS IN THE SUGAR MARKET INTO THE FALL SAID DARRYL BERRY TRADING MANAGER FOR TORONTOBASED REDPATH SUGARS ONE OF THE TOP TWO CANADIAN IMPORTERS OF RAW CUBAN SUGAR HOW MUCH UPWARD PRESSURE IS PUT ON PRICES DEPENDS ON WHETHER RUSSIA NEEDS THE SUGAR IMMEDIATELY SAID JUDITH GANES A SENIOR COMMODITY ANALYST WITH MERRILL LYNCH SHE SAID THE SUGAR FUTURES MARKET ALSO WILL BE POISED NEXT WEEK FOR THE REPORTING OF ESTIMATES FOR THE AUSTRALIAN SUGAR CROP WHICH ALSO MAY SHOW A DROP AND ADD TO UPWARD PRICE PRESSURE JOHN GEBHARD MANAGER OF RAWSUGAR PURCHASING AT REFINED SUGARS INC OF YONKERS NY ONE OF THE LEADING US SUGAR REFINERS SAID THE 45DAY BREATHING SPACE ALLOWED TO CUBA UNDER THE FORCE MAJEURE CLAUSE COULD CREATE SIGNIFICANT SHORTTERM DISRUPTIONS IN THE INTERNATIONAL MARKET IF CUBA DOESN'T DELIVER FOR THE MONTH OF JUNE AND FOR AS LONG AS 45 DAYS IT WILL CREATE A DISLOCATION HE SAID ADDING THE PRICE FOR THOSE SUGARS THAT HAVE TO BE BOUGHT ELSEWHERE WILL GO UP TREMENDOUSLY STILL MR GEBHARD SAID IT'S BASICALLY A SHORTTERM EVENT THE VOID WILL BE FILLED CUBA WILL RESUME ITS SHIPMENTS SUGAR IS PRACTICALLY THEIR ONLY SOURCE OF FOREIGN EXCHANGE AND THE COUNTRY WANTS TO HONOR ITS COMMITMENTS SUGAR ACCOUNTS FOR 63 OF CUBA'S HARDCURRENCY EXPORTS THE SUGAR HARVEST ESPECIALLY THIS YEAR'S DISASTROUS CROP HAS BEEN PLAGUED BY A LACK OF FUEL FERTILIZER AND SPARE PARTS ALL OF WHICH HAVE BECOME SCARCE AS A RESULT OF THE COLLAPSE OF THE FORMER SOVIET BLOC A NUMBER OF ANALYSTS WERE SKEPTICAL ABOUT THE IMPACT OF THE STORM ON WHAT ALREADY APPEARED TO BE A CALAMITOUS HARVEST IT GETS THEM OFF THE HOOK ON CERTAIN CONTRACTS THEY CAN'T DELIVER ON WITHOUT HAVING TO PAY PENALTIES SAID NICOLAS RIVERO A SUGAR INDUSTRY ANALYST BASED IN FALLS CHURCH VA IT'S NOT FIDEL'S FAULT IT'S FORCE MAJEURE ADDED MS GANES THE MERRILL LYNCH ANALYST THE STORM CAME AT THE FINAL STAGES OF HARVESTING SO IT WAS NOT SO MUCH A QUESTION OF PHYSICAL CROP DAMAGE BUT A QUESTION OF DELAYS DUE TO FLOOD DAMAGE TO RAILWAYS AND OTHER INFRASTRUCTURE ALVARO CARTA A WEST PALM BEACHBASED SUGAR EXPERT WHO HAS WRITTEN A STUDY ON THE CUBAN INDUSTRY FOR THE CUBAN AMERICAN NATIONAL FOUNDATION A CONSERVATIVE LOBBYING GROUP SAID THAT HE BELIEVES THAT IN THE LAST FEW YEARS CUBA HAS BEEN INFLATING ITS SUGAR PRODUCTION FIGURES HE THINKS THE SUGAR CROP THIS YEAR WON'T BE MORE THAN 25 MILLION TONS THE PARTY IS OVER HE SAID IN A TELEPHONE INTERVIEW THIS YEAR'S HARVEST WILL CERTAINLY DEEPEN THE COUNTRY'S CONTINUING ECONOMIC CRISIS IT COULD LEAD TO DOMESTIC CUTBACKS IN SUGAR CONSUMPTION INCREASING AN ALREADY CRITICAL FOOD SHORTAGE IT MOST PROBABLY WILL LEAD TO GREATER SHORTAGES OF FUEL WHICH HAVE CAUSED EXTENSIVE BLACKOUTS THROUGHOUT THE ISLAND AND HAVE PARALYZED MANY OF CUBA'S INDUSTRIES I DON'T KNOW HOW THEY WILL COVER THEIR OIL NEEDS FROM JULY TO DECEMBER SAID ONE US GOVERNMENT ANALYST CUBA'S PROBLEM IS THAT IF THERE IS NO SUGAR THERE ARE NO OIL DELIVERIES LOOKING AHEAD TO OTHER COMMODITY MARKETS THIS WEEK COPPER COPPER FUTURES PRICES ARE EXPECTED TO TUMBLE FURTHER THIS WEEK AFTER A SHARP SELLOFF FRIDAY IN EXTREMELY VOLATILE TRADING COPPER FOR JULY DELIVERY SKIDDED 285 CENTS TO SETTLE AT 8145 CENTS A POUND ON NEW YORK'S COMMODITY EXCHANGE THE BASE METAL HAD TRADED IN A WIDE RANGE BETWEEN 87 CENTS AND 8070 CENTS IN MOSTLY TECHNICALLY DRIVEN ACTIVITY THERE WAS A VICIOUS SELLOFF THAT DID STRUCTURAL DAMAGE TO COPPER FUTURES SENTIMENT SAID RICHARD HIRSCH VICE PRESIDENT WITH SHARPS PIXLEY INC PERCEPTIONS OF WEAK FUNDAMENTAL DEMAND FOR COPPER OVERSEAS MAY PUSH THE FUTURES PRICE OF THE ACTIVE JULY CONTRACT TOWARD LIFEOFCONTRACT LOWS AROUND 77 CENTS A POUND IN THE DAYS AHEAD TRADERS SAID 9306070032 930607 NOW KOSHER VODKA IS WINNING CONVERTS IN CATHOLIC POLAND BUT NATION'S ONLY TWO RABBIS ARGUE OVER ITS LEGITIMACY LESS WOOZY THE NEXT DAY BY BARRY NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL WARSAW IN THE LIQUOR SHOP VODKAS WITH NAMES LIKE LE CHIAM DAVID ANATEVKA AND ESTER FILL AN ENTIRE SHELF THEIR LABELS DISPLAY GOLDEN MENORAHS OR DRAWINGS OF MEN IN PRAYER SHAWLS PLUS A HEBREW INSCRIPTION AND THE ENGLISH WORDS KOSHER CERTIFICATE RYSZARD KUSIO BUYS FIVE BOTTLES OF A BRAND CALLED CUGEL THIS IS THE MOST HONEST PURE CLEAN VODKA YOU CAN HAVE HE SAYS AS THE SALESCLERK ROLLS UP THE BOTTLES IN WRAPPING PAPER HANG ON A SECOND KOSHER VODKA IN POLAND FIRST OF ALL THERE ARE HARDLY ANY JEWS LEFT IN POLAND 40000 AT MOST AND THEY AREN'T BIG DRINKERS SO WHY WOULD ANYONE MAKE MILLIONS OF BOTTLES OF KOSHER VODKA JUST FOR NONJEWISH POLES ANYWAY VODKA IS NOTHING BUT UNFLAVORED SPIRIT IT'S KOSHER TO BEGIN WITH RIGHT THE SALESCLERK LISTENING TO ALL THESE QUESTIONS HAS A LOGICAL ANSWER DON'T ASK ME ASK A RABBI GOOD POINT BUT WHICH ONE FOR THE FIRST TIME SINCE HITLER WIPED OUT THE PREWAR CENTER OF TALMUDIC TEACHING POLAND HAS TWO RABBIS BOTH WERE BORN IN POLAND AND SURVIVED THE HOLOCAUST BOTH WEAR LONG BLACK COATS AND BLACK HATS BOTH HAVE LONG WHITE BEARDS AND BOTH CLAIM TO BE CHIEF RABBI OF POLAND CHIEF RABBI PINCHAS MENACHEM JOSKOWICZ LEADS THE CONGREGATION OF WARSAW'S ONE SYNAGOGUE IN HIS JUDGMENT ONLY RABBICERTIFIED VODKA CAN BE KOSHER CHIEF RABBI ZEV W MOREINO HAS AN APARTMENT IN LODZ A SLIP OF PAPER UNDER HIS BELL SAYS POLISH NATIONAL RABBINATE IN HIS JUDGMENT VODKA IS KOSHER BY NATURE RABBI JOSKOWICZ SAYS RABBI MOREINO ISN'T A RABBI AND RABBI MOREINO SAYS THE SAME OF RABBI JOSKOWICZ THOUGH BOTH INSIST THEY HAVE RABBINICAL EDUCATIONS RABBI JOSKOWICZ HAS COMPLAINED TO THE POLISH ATTORNEY GENERAL ABOUT RABBI MOREINO AND IMPUGNED HIM ON POLISH TELEVISION RABBI MOREINO HAS SUED RABBI JOSKOWICZ AND ISSUED DECREES CONCERNING HIM WHICH INCLUDE THE FOLLOWING ADJECTIVES OFFENSIVE HYPOCRITICAL FALSE AND SATANIC JEWS FAMILIAR WITH THE FEUD USUALLY CALL IT SHAMEFUL AND CHANGE THE SUBJECT AFTER ALL WHEN POLAND HAD THREE MILLION JEWS IT DIDN'T HAVE EVEN ONE CHIEF RABBI TODAY IT HARDLY NEEDS TWO AND THE WHOLE MESHIGAS WOULDN'T HAVE COME TO LIGHT IF IT WASN'T MIXED UP IN THE STICKY BUSINESS OF KOSHER VODKA POLAND PEOPLE SAY IS THE WORST PLACE TO HAVE SUCH AN ARGUMENT ON SUCH A SUBJECT YET MAYBE THERE IS A GENTLER WAY OF LOOKING AT IT RABBIS ARE CARRYING ON HERE AGAIN IT ISN'T A FANCY COLLOQUY BUT IN JEWISH HISTORY'S BLACKEST SPOT IT IS A FLUTTER OF LIFE RABBI JOSKOWICZ TELLS HIS STORY SIMPLY I WAS BORN IN POLAND 70 YEARS AGO ABOUT I WAS IN THE GHETTO THE CAMPS IN 1947 I WENT TO ISRAEL I WAS NEVER A PRACTICING RABBI I OWN A DRUG STORE IN JERUSALEM HE GOES OVER THIS IN A FEW SECONDS IN HIS OFFICE BEHIND THE SYNAGOGUE THE RABBI SITS AT HIS SMALL DESK AND EATS A CRUST OF RYE BREAD IN 1989 HE SAYS THE POLISH GOVERNMENT ASKED ISRAEL TO SEND A RABBI SO I CAME I OPENED THE SYNAGOGUE SATURDAYS MORNINGS EVENINGS I AM THE CHIEF RABBI OF ALL POLAND THERE ARE NO OTHER RABBIS I AM THE ONLY RABBI RABBI MOREINO DOES NOT TELL HIS STORY SIMPLY THE TABLE IN HIS BARE APARTMENT IS PILED WITH CARBONS OF COMMUNISTERA DOCUMENTS THE RABBI DISCUSSES THEM FOR 150 MINUTES HIS VOICE HIGH AND HOARSE GROWING HOARSER AND HIGHER TO BE SUCCINCT HE IS 77 BORN IN LODZ A SURVIVOR OF THE GHETTOS AND THE CAMPS IN 1948 THE RABBI SAYS HE WAS MADE CHIEF RABBI OF LODZ AND HE STAYED 23 YEARS HE BELIEVES HE EVENTUALLY BECAME THE LAST RABBI IN POLAND ALL ALONG HE FOUGHT TO SAVE THE REMNANTS OF JEWISH CEMETERIES IN 1968 THE COMMUNISTS RANSACKED HIS APARTMENT IN 1971 THEY GAVE HIM A CHANCE TO LEAVE UNTIL HIS RETURN AFTER THE REVOLUTION OF 1989 HE FOUND REFUGE IN BROOKLYN AS POLAND'S LAST RABBI RABBI MOREINO REASONS HE MUST ALSO HAVE BEEN CHIEF RABBI NOW HE FINDS THAT ON THEIR WAY OUT HIS TORMENTORS LET SOMEBODY ELSE HAVE HIS JOB THE RABBI RAISES A FINGER NO ONE STEALS THE POST OF ANOTHER RABBI HE SAYS IT IS A GREAT SCANDAL TO VIOLATE MY LAW IN POLAND TO PUSH ME AWAY FROM THE HOLY DUTIES I HAVE PERFORMED FOR NEARLY 50 YEARS RABBI MOREINO'S COMPLAINT IS ABOUT INJUSTICE IT WOULDN'T BE ABOUT KOSHER VODKA IF SIGMUND NISSENBAUM HADN'T COME ALONG MR NISSENBAUM ENDURED THE CAMPS TOO AND LIVES IN GERMANY IN 1983 HE STARTED THE NISSENBAUM FOUNDATION TO RESTORE THE JEWISH CEMETERIES OF POLAND RABBI MOREINO'S OWN CAUSE THE FOUNDATION IS ALSO A MOVER IN THE WORLD OF KOSHER VODKA BEFORE COMMUNISM FELL AND RABBI MOREINO RETURNED MR NISSENBAUM LANDED AN EXCLUSIVE 30YEAR KOSHERVODKA DEAL AT THE STATE LIQUOR MONOPOLY WITH A STAMP FROM A FRENCH RABBI POLNISSKOSHER VODKA HIT IT BIG IN 1989 POLISH DRINKERS FELT KOSHER VODKA MUST BE BETTER THAT IT LEFT THEM LESS WOOZY THE MORNING AFTER BUT THEN MONOPOLIES WENT OUT OF FASHION INSTEAD OF A SINGLE LIQUOR COMPANY POLAND NOW HAS 25 ONE AFTER ANOTHER ELBOWING INTO THE KOSHERVODKA PRESERVE FOREIGN RABBIS ARE STAMPING BOTTLES FROM BIELSKOBIALA TO BIALYSTOK TO MR NISSENBAUM HOWEVER A MONOPOLY IS A MONOPOLY COMMUNISM OR NOT THE AGREEMENT IS FOR 30 YEARS HE SAYS IT MUST BE MAINTAINED WARSAW'S DISTILLERY WHICH MAKES LE CHIAM GALLS MR NISSENBAUM MOST ITS KOSHER STAMP IS FROM CHIEF RABBI JOSKOWICZ I HAVE NOTHING AGAINST HIM GIVING A CERTIFICATE TO A CUCUMBER SAYS MR NISSENBAUM BUT NOT VODKA THIS IS ILLEGAL THE VIEW AT THE DISTILLERY THOUGH IS THAT RABBI JOSKOWICZ GIVES THE ONLY KOSHER STAMP IN POLAND THAT IS KOSHER THE REGULATION OF 1927 IS STILL IN EFFECT SAYS DIRECTOR ZBIGNIEW BACLAW KNOCKING BACK A THIMBLEFUL OF LE CHIAM IN 1927 AS MR BACLAW TELLS IT THE POLISH PRESIDENT RULED THAT THE POLISH CHIEF RABBI ALONE COULD ISSUE KOSHER CERTIFICATES THE ONLY GENUINE KOSHER VODKA THEREFORE IS THE ONE WITH A STAMP FROM CHIEF RABBI JOSKOWICZ THAT'S WHY WE DIDN'T GO LOOKING FOR OUTSIDE RABBIS MR BACLAW SAYS SINCE POLAND HAD NO CHIEF RABBI IN 1927 IT'S HARD TO GUESS HOW THE PRESIDENT COULD HAVE ORDERED HIM AROUND AND MR BACLAW DOESN'T SEEM TO KNOW PRECISELY WHAT THIS RULING SAID BUT MR NISSENBAUM DOESN'T NITPICK SO WHAT IF THE CHIEF RABBI DOES HAVE POLAND'S ONE LEGITIMATE KOSHER STAMP THAT DOESN'T MEAN THE WARSAW DISTILLERY HAS POLAND'S ONE LEGITIMATE CHIEF RABBI CHIEF RABBI MOREINO THE VODKA WAR HAS BROUGHT HIS CLAIM THAT HE IS THE ONE TRUE CHIEF RABBI TO THE PUBLIC EYE IT ISN'T AS IF MR NISSENBAUM HAS PROMOTED THE RABBI'S CAUSE HE HAS SIMPLY LENT SOME MONETARY AND MORAL SUPPORT ENABLING RABBI MOREINO TO GET ON WITH RUNNING DOWN RABBI JOSKOWICZ YET IF MR NISSENBAUM EVER THOUGHT A LITTLE SUPPORT WOULD WIN HIS BUSINESS SUCH A RIGHTEOUS ALLY HE MADE A BUNGLE RABBI MOREINO STILL BELIEVES KOSHER VODKA IS NO DIFFERENT FROM ALL OTHER VODKA FOR VERY COMPLICATED REASONS EVERYBODY IN THE KOSHERVODKA GAME BELIEVES IT IS BUT EVEN IF KOSHER VODKA DID EXIST RABBI MOREINO WOULD SEE NO POINT IN PEDDLING IT TO POLISH CATHOLICS THOSE IN THE BUSINESS SEE NO PROBLEM AS RABBI JOSKOWICZ SAYS IF YOU WANT TO DRINK KOSHER DRINK KOSHER AT THIS RABBI MOREINO'S VOICE BECOMES SO HIGH AND SO HOARSE HIS READING LAMP VIBRATES THERE IS A FLOOD OF ALCOHOL IN EVERY SHOP YOU SEE SOCALLED KOSHER VODKA IT'S A BIG LIE ENEMIES WILL SAY THIS HOLY ACT HAS ONLY ONE PURPOSE PROFITS AGAIN THE RABBI RAISES A FINGER THERE IS NO MYSTICISM IN KOSHER DRINKS HE SAYS THIS IS A JOKE RELIGIOUS JEWS ALL OVER THE WORLD USE IN SMALL QUANTITIES SPIRITS AND VODKAS BUT WITHOUT ANY CERTIFICATE THE MISLEADING OF JEWS AND NONJEWS IS A TERRIBLE SIN HE GOES ON LEANING OVER HIS PILE OF DOCUMENTS IT IS THE DUTY OF THE NATIONAL RABBINATE TO DESTROY THIS CONSPIRACY OF PETTY TRADERS I WILL WITHDRAW THESE SHAMEFUL CERTIFICATES IT'S CHEATING RABBI MOREINO STOPS TO COMPOSE HIMSELF HE HAS A SIP FROM HIS GLASS OF TEA AND PUSHES A PLATE OF COOKIES TOWARD HIS GUEST PLEASE HE SAYS EAT THEY'RE KOSHER 9306070031 930607 BUSINESS BRIEF GOODYEAR TIRE & RUBBER CO FIRM TO TRIM BRUSSELS STAFF PLANS SHIFT TO LUXEMBOURG GOODYEAR TIRE & RUBBER CO SAID IT WILL DISMISS 100 OF THE 190 EMPLOYEES AT ITS EUROPEAN HEADQUARTERS IN BRUSSELS AND MOVE MOST OF THE FUNCTIONS THERE TO ITS LUXEMBOURG TECHNICAL CENTER THE COMPANY ALSO WILL SHIFT SEVERAL MEMBERS OF ITS EUROPEAN EXECUTIVE COMMITTEE TO ITS WORLDWIDE HEADQUARTERS IN AKRON OHIO GOODYEAR ADMITTED THAT THE SLUGGISH EUROPEAN TIRE MARKET WAS A FACTOR IN MAKING THE MOVE SINCE IT WILL CUT COSTS BUT A SPOKESMAN ADDED IT WOULD BE A GOOD THING TO DO REGARDLESS HAVING EUROPEAN EXECUTIVES IN AKRON PUTS THEM CLOSER TO NECESSARY SUPPORT SERVICES AND GIVES COUNTRY MANAGERS IN EUROPE MORE AUTONOMY TO SERVE CUSTOMERS THE SPOKESMAN SAID MOREOVER MOVING SALES AND MARKETING JOBS TO THE LUXEMBOURG TECHNICAL CENTER FROM BRUSSELS WILL ALLOW THOSE EMPLOYEES TO WORK TOGETHER BETTER ON NEW PRODUCTS HE SAID GOODYEAR EMPLOYS 19000 WORKERS IN EUROPE 9306070028 930607 DELAWARE NORTH APPEARS TO BE WINNER OF US PACT FOR YOSEMITE CONCESSIONS BY ROSE GUTFELD AND JOHN R EMSHWILLER STAFF REPORTERS OF THE WALL STREET JOURNAL THE INTERIOR DEPARTMENT HAS NEARLY DECIDED TO STICK WITH ITS SELECTION OF DELAWARE NORTH COS AS THE NEW CONCESSION CONTRACTOR FOR YOSEMITE NATIONAL PARK AND HAS WON CONCESSIONS OF ITS OWN FROM THE COMPANY IN AN ACKNOWLEDGMENT OF THE CONTROVERSY THAT CONTINUES TO SWIRL AROUND THE CONTRACT THE AGENCY HAS PERSUADED THE COMPANY TO SWEETEN ITS OFFER MODESTLY SAMUEL GIFFORD A DELAWARE NORTH VICE PRESIDENT SAID THE COMPANY HAD CORDIAL DISCUSSIONS WITH THE DEPARTMENT THAT RESULTED IN SOME REVISIONS BUT DECLINED TO DISCUSS ANY CHANGES ONCE INTERIOR SECRETARY BRUCE BABBITT ANNOUNCES HIS DECISION THE CONTRACT GOES TO CONGRESS FOR A 60DAY REVIEW PERIOD THE CONTRACT ESTIMATED AT ROUGHLY 15 BILLION COULD BE ANNOUNCED AS EARLY AS THIS WEEK ENVIRONMENTAL GROUPS AND SOME LAWMAKERS HAVE CRITICIZED THE AWARD PROCESS AND SOME LOSING BIDDERS ARE STILL TRYING TO HEAD OFF THE AWARD TO DELAWARE NORTH ONE SUCH BIDDER YRT SERVICES CORP WHICH UNSUCCESSFULLY SUED TO OVERTURN THE DECISION SAID IT PLANS TO APPEAL ANOTHER BIDDER YOSEMITE PARK SERVICES LP CONTENDS IT WAS UNFAIRLY DISQUALIFIED AND HAS ASKED THE SECRETARY TO REVIEW THE ISSUE A SPOKESMAN FOR MR BABBITT SAID WE'RE STILL INTERESTED IN HEARING FROM PEOPLE BUT THE DECISION HAS BEEN ON THE SECRETARY'S DESK FOR SOME TIME AND WE EXPECT HIM TO MAKE A DECISION SOON DELAWARE NORTH A FAMILYOWNED BUSINESS IN BUFFALO NY WILL BE THE PRINCIPAL BUSINESS OPERATOR FOR THE LODGES RESTAURANTS GASOLINE STATIONS GIFT SHOPS AND HORSE RENTALS USED BY 38 MILLION PEOPLE WHO VISIT THE CALIFORNIA PARK EACH YEAR THE COMPANY WAS ORIGINALLY TAPPED BY THE INTERIOR DEPARTMENT IN DECEMBER BUT IT WAS LEFT TO THE CLINTON ADMINISTRATION TO MAKE A FINAL DECISION THE YOSEMITE CONTRACT IS LIKELY TO SET A PRECEDENT FOR OTHER CONTRACTS THAT COME UP IN THE NEXT FEW YEARS IN ADDITION TO BEING THE BIGGEST IN THE PARK SYSTEM IT WILL BE THE FIRST TO BE AWARDED SINCE THE GOVERNMENT REVAMPED ITS CONCESSIONS POLICY TO REQUIRE CONTRACTORS TO RETURN A GREATER SHARE OF REVENUE 9306070027 930607 RETAILING ADDING GROCERIES SUPER KMARTS TRY TO BE MORE THINGS TO MORE PEOPLE BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL MONTROSE OHIO WHEN KMART CORP OPENED A BIG GROCERYANDGENERALMERCHANDISE STORE HERE LAST FALL IT WAS ALL THE TALK AT VICKI BROCKMAN'S DINNER PARTY HER GUESTS COULDN'T IMAGINE BUYING SAUSAGE AND SARDINES AT A RETAILER THEY HAD ALWAYS ASSOCIATED WITH PAINT AND POLYESTER THEY WOULD SAY KMART FOR YOUR GROCERIES IT JUST SOUNDS SO DISGUSTING' SAYS MRS BROCKMAN A 34YEAROLD MOTHER OF TWO BUT MRS BROCKMAN AND HER ONCESKEPTICAL FRIENDS NOW SHOP AT THE SUPER KMART FREQUENTLY BOTH FOR GENERAL GOODS AND FOR GROCERIES MRS BROCKMAN IS ESPECIALLY KEEN ON KMART'S GROCERY PRICES THE TENDERLOIN SHE RECENTLY BOUGHT THERE COST 499 PER POUND COMPARED WITH 699 AT THE FAMILYOWNED ACME SUPERCENTER ACROSS THE STREET FROM SUPER KMART HER HUSBAND DAVE AN ACCOUNTANT TRACKS RECEIPTS ON HIS COMPUTER MONTROSE SHOPPERS MAY BE PLEASED BUT CAN KMART MAKE THIS MERCHANDISING MELANGE WORK ON A NATIONAL SCALE IT IS CERTAINLY AN UPHILL TASK FOR THE RETAILER BASED IN TROY MICH KMART WHICH IS TRYING TO POSITION ITSELF AS A PURVEYOR OF PROFESSIONAL WOMENS' CLOTHING HAS TO CONVINCE CONSUMERS THAT THE SUPERSTORES ALSO ARE A GOOD PLACE TO BUY COLD CUTS AND MILK AND LETTUCE AND MEAT MOREOVER THERE ARE FEW LOCATIONS LEFT IN THE US AS FREE OF TOUGH GROCERY COMPETITION AS MONTROSE AN AREA WITHIN THE TOWNSHIP OF COPLEY OHIO POPULATION 2000 KMART THE NATION'S SECONDLARGEST RETAILER IS COUNTING ON THESE SOCALLED SUPER KS TO HELP STEM THE LOSS OF CUSTOMERS TO INDUSTRYLEADER WALMART STORES INC WALMART BASED IN BENTONVILLE ARK ALREADY HAS OPENED ABOUT 40 COMBINATION STORES CALLED SUPERCENTERS AND MAY ROLL OUT 50 MORE BY YEAR END KMART CURRENTLY HAS JUST FOUR SUPERSTORES ONE HERE IN MONTROSE AND THE OTHERS IN MEDINA OHIO CHARLOTTE NC AND JACKSON MISS AND HAS TO MOVE FAST BEFORE WALMART SNAPS UP THE GOOD SPOTS RETAIL EXPERTS ARE CLOSELY WATCHING KMART'S LATEST DEFENSIVE MOVE ITS SUPERSTORES AREN'T LIKELY TO BE AS PROFITABLE AS KMART'S TRADITIONAL STORES BECAUSE PROFIT MARGINS FROM GROCERIES ARE VERY THIN BUT DAVE MARSICO DIVISION VICE PRESIDENT FOR SUPER KMART CENTERS MAINTAINS THAT THE COMPANY IS VERY HAPPY WITH THE PERFORMANCE OF THE FIRST FOUR SUPERSTORES HE WON'T DISCLOSE SALES ALSO THE SUPER K EXPERIMENT IS FORCING KMART TO SLOW THE PACE OF RENOVATION AT ITS TRADITIONAL STORES SO FAR JUST MORE THAN HALF THE 2412 KMART STORES HAVE HAD FACE LIFTS AS PART OF A 3 BILLION EFFORT TO HANG ONTO MARKET SHARE IN THE INTENSELY COMPETITIVE DISCOUNT ARENA KMART DOESN'T WANT TO COMPLETE THE MAKEOVER UNTIL IT DETERMINES WHICH OF THE REMAINING STORES COULD BENEFIT FROM CARRYING GROCERIES THE COMPANY WILL TEST 17 MORE SUPER KS THIS YEAR THE MONTROSE STORE HAS 165000 SQUARE FEET 35 OF WHICH ARE DEDICATED TO GROCERIES BESIDES A BIG SELECTION OF BAKED GOODS PRODUCE AND MEAT KMART'S FRESHSEAFOOD COUNTER ON A RECENT AFTERNOON OFFERED OCTOPUS THE TENTACLED TREAT ATTRACTED LOTS OF OOHS AND AHS FROM CUSTOMERS IN MEDINA A TOWN OF 20000 ABOUT 15 MILES FROM MONTROSE RESIDENT ELSIE MONTZ COMPLAINS ABOUT THE LOCAL SUPER KMART'S MASSIVENESS BUT CONCEDES THERE AREN'T MANY OTHER PLACES TO GO IT ISN'T REALLY APPEALING BUT IT'S HERE SHE SAYS AND BECAUSE THE SUPER K STORES ARE OPEN AROUND THE CLOCK RESIDENTS CAN SOCIALIZE THERE EVERYONE'S ALWAYS SAYING I WAS OUT AT SUPER K LAST NIGHT' SAYS JODI TYE AN 18YEAROLD HIGHSCHOOL SENIOR IN MEDINA BUT ANALYSTS ARE SKEPTICAL ABOUT KMART CHAIRMAN JOSEPH ANTONINI'S EXPANSION PLANS HE SAYS HE WANTS TO OPEN 450 SUPER KMARTS EVEN IN PLACES LIKE SUBURBAN CHICAGO WHERE SHOPPERS HAVE LOTS OF CHOICES AND AREN'T LOOKING FOR A LOCAL HANGOUT COMPETITION IS FIERCE IN METROPOLITAN MARKETS SAYS N RICHARD NELSON JR AN ANALYST AT CHICAGO'S DUFF & PHELPS CORP MEANWHILE THE SUPERSTORE SEGMENT OF THE INDUSTRY IS QUICKLY BECOMING CROWDED BOTH KMART AND WALMART ARE UP AGAINST SUCCESSFUL REGIONAL CHAINS LIKE MEIJER INC OF GRAND RAPIDS MICH AS WELL AS SUPERMARKET GROUPS THAT ARE ADDING MERCHANDISE SECTIONS TO THEIR STORES CONSUMERS SIMPLY DON'T NEED MORE THAN ONE BIG COMBINATION STORE IN THEIR MARKET CONTENDS ROGER BLACKWELL A COLUMBUS OHIO RETAIL CONSULTANT HE SAYS SUPERSTORES ARE LIKELY TO FOLLOW THE SAME PATTERN AS WAREHOUSE CLUBS WHICH HAVE SUFFERED RECENTLY IN PART FROM TOO MUCH COMPETITION KMART'S OWN PACE MEMBERSHIP WAREHOUSE UNIT HAS HAD HEFTY LOSSES IN RECENT QUARTERS IN FACT KMART LAST MONTH SOLD 14 LOSSMAKING PACE STORES TO WALMART WHICH IS STRUGGLING WITH ITS OWN SAM'S WAREHOUSE UNITS KMART HAS FAILED IN FOOD BEFORE IN THE 1960S ALLIED SUPERMARKETS INC OPERATED FOR A TIME WITHIN KMART STORES BUT THE PARTNERSHIP ENDED IN FINANCIAL DISASTER FOR ALLIED WHICH LATER MERGED WITH VONS COS KMART GAVE THE CONCEPT ANOTHER TRY IN 1987 IN A JOINT VENTURE WITH BRUNO'S INC A BIRMINGHAM ALA SUPERMARKET CHAIN BRUNO'S PULLED OUT OF THE VENTURE AFTER FIVE YEARS CITING BIG LOSSES UNDER THE BEST OF CIRCUMSTANCES GROCERIES STILL REQUIRE A DIFFERENT APPROACH A DRESS CAN STAY ON THE RACKS FOR WEEKS BUT NOT MILK ON THE COOLER SHELF ON RETURNING HOME FROM SUPER K MONTROSE RESIDENT MAUREEN WHITE NOTICED THAT THE EXPIRATION DATE ON SOME DAIRY PRODUCTS HAD PASSED EVEN THOUGH A KMART SPOKESWOMAN SAYS THE STORES ARE REAL SENSITIVE TO EXPIRED PRODUCTS AND MONITOR DAIRY GOODS DAILY I'M GOING BACK TO ACME THE STORE ACROSS THE STREET MS WHITE SAYS MRS BROCKMAN MEANWHILE SAYS THE FRUIT ISN'T NECESSARILY GORGEOUS AT KMART BUT KMART IS CHEAPER THAN THE MARKET SEVERAL MILES AWAY THAT SHE GENERALLY FAVORS FOR PRODUCE YOU GET WHAT YOU PAY FOR I GUESS THE KMART SPOKESWOMAN SAYS THE COMPANY SPECIFIES THE LARGEST SIZES OF FRUITS AND VEGETABLES AND MAINTAINS THE HIGHEST STANDARDS IN ORDERING EVEN WALMART IS FINDING TOUGHER COMPETITORS IN FOOD RETAILING SOME ARE LAUNCHING EFFORTS TO CUT COSTS BEFORE WALMART COMES TO TOWN ANALYSTS THOUGH CONTEND WALMART IS STRIDES AHEAD OF KMART WALMART IS BUILDING THREE FOODDISTRIBUTION CENTERS THAT WILL SHAVE COSTS BY ALLOWING THE COMPANY TO BUY AND DISTRIBUTE THE FOOD ITSELF KMART MEANWHILE GETS ITS GROCERIES FROM WHOLESALERS THAT SERVE LOTS OF FOOD RETAILERS AND THEREFORE CAN'T OFFER SIGNIFICANT SAVINGS FOR HIS PART KMART'S MR MARSICO CONSIDERS WHOLESALERS THE WAY TO GO WHY GO OUT AND SPEND MONEY FOR A BUILDING IF YOU CAN GET COMPARABLE RATES FROM A WHOLESALER HE ASKS TO URGE CONSUMERS TO THINK KMART WHEN THEY NEED GROCERIES THE COMPANY IS FEATURING IN FULLPAGE NEWSPAPER ADVERTISEMENTS JUST ONE GROCERY ITEM SAY A CARTON OF EGGS WHICH REALLY SENDS A MESSAGE SAYS KMART'S MR MARSICO YET THIS COMES AT A TIME WHEN KMART IS USING AGGRESSIVE TELEVISION ADVERTISING TO TRY TO SHED ITS IMAGE AS THE POLYESTER PALACE RESULTS OF THE FASHION AD CAMPAIGN ARE MIXED SO FAR AND RETAIL EXPERTS WONDER IF THAT CONCEPT OF KMART AS A FASHION PURVEYOR WILL BE EVEN MORE DIFFICULT FOR SOME TO SWALLOW WHEN GROCERIES ARE TOSSED IN WHEN YOU TALK ABOUT FASHION PEOPLE DON'T EQUATE THAT WITH A SUPERMARKET SAYS ALEX BAILIAN A LOS ANGELES RETAIL CONSULTANT KMART'S MR MARSICO HOWEVER SAYS THERE IS NO DANGER OF SENDING CONFLICTING MESSAGES OUR GROCERY LOOKS GREAT AND THAT'S WHAT PROFESSIONAL WOMEN WANT HE SAYS SOME SHOPPERS AREN'T CONVINCED MEDINA RESIDENT VALERIE SAWICKI SAYS PILING SHIRTS AND SWEATERS IN HER GROCERY CART SEEMS DIRTY OR SOMETHING SO SHE SOLVES THE PROBLEM BY MAKING SEPARATE SHOPPING TRIPS TO SUPER KMART BUT IN THESE PENNYPINCHING DAYS SOME CONSUMERS AREN'T SO SELECTIVE LISA BLAKE WHILE SCANNING THE GARDEN SUPPLIES AT A MEIJERS SUPER STORE THAT SELLS GROCERIES AND GENERAL MERCHANDISE IN BENTON HARBOR MICH WOULDN'T RULE OUT SHOPPING AT A SUPER KMART OR ANY OTHER COMBINATION STORE FOR THAT MATTER DEPENDS ON WHAT THEIR PRICES ARE LIKE SHE SAYS 9306070026 930607 WHO'S NEWS PRUDENTIAL SECURITIES NAMES OWENS TO LEAD SOUTHWEST OPERATIONS NEW YORK PRUDENTIAL SECURITIES INC SAID THOMAS J OWENS WILL TAKE OVER AS HEAD OF ITS SOUTHWEST OPERATIONS INCLUDING THE DALLAS BRANCH OFFICE WHICH IS ONE OF SEVERAL BEING INVESTIGATED BY THE SECURITIES AND EXCHANGE COMMISSION AS PREVIOUSLY REPORTED THE SEC INVESTIGATION CONCERNS WHETHER BROKERS AT SEVERAL BRANCHES OF PRUDENTIAL SECURITIES THE NATION'S FOURTHLARGEST BROKERAGE FIRM MAY HAVE VIOLATED A 1986 SETTLEMENT REQUIRING STRICT REVIEWS OF BROKERAGE ACCOUNTS THE PROBE CONCERNS AT LEAST FOUR BRANCHES AND TRADING AND ADMINISTRATIVE ACTIVITIES FROM 1987 THROUGH 1990 ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER MR OWENS 50 YEARS OLD HAS SPENT 19 YEARS AT PRUDENTIAL AND WAS PREVIOUSLY ASSOCIATE REGIONAL DIRECTOR FOR SALES AND MARKETING IN THE FIRM'S MIDATLANTIC REGION HEADQUARTERED IN PHILADELPHIA THE SOUTHWEST REGION THAT HE WILL NOW HEAD INCLUDES 30 BRANCH OFFICES IN 10 STATES AND IS HEADQUARTERED IN DALLAS PRUDENTIAL SECURITIES IS A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA HE SUCCEEDS R PETER ARCHBOLD WHO ACCORDING TO A STATEMENT RELEASED BY THE COMPANY WILL DEVOTE HIS EFFORTS TO RESOLVING MATTERS ARISING FROM RECENT NEGATIVE PUBLICITY THE COMPANY SAID MR ARCHBOLD REQUESTED THAT HE BE RELIEVED OF HIS DUTIES AS SOUTHWEST REGIONAL DIRECTOR 9306070025 930607 CANADA PLANS TO LIFT RESTRICTIONS ON TRADE OF BARLEY WITH US OTTAWA THE CANADIAN GOVERNMENT ANNOUNCED THAT RESTRICTIONS ON BARLEY TRADE WITH THE US WILL BE LIFTED AUG 1 THE MOVE WILL CREATE A TRUE CONTINENTAL MARKET FOR FEED AND MALTING BARLEY WHICH WILL BENEFIT FARMERS IN BOTH COUNTRIES SAID CANADA'S TRADE MINISTER MICHAEL WILSON MALTING BARLEY IS USED TO PRODUCE BEER CANADA CURRENTLY DOESN'T ALLOW BARLEY TO BE IMPORTED FROM THE US BUT CANADIAN FARMERS EXPORT LIMITED AMOUNTS TO THE US WITH THE LIFTING OF THE RESTRICTIONS BARLEY WILL MOVE FREELY ACROSS THE BORDER IN BOTH DIRECTIONS HOWEVER THE IMPACT OF THE MOVE WILL BE LESS SIGNIFICANT FOR US FARMERS BECAUSE THEY EXPORT SUBSTANTIALLY LESS BARLEY THAN CANADIAN FARMERS FOR THE PAST FIVE YEARS CANADIAN EXPORTS HAVE AVERAGED 288000 METRIC TONS A YEAR ABOUT ONETHIRD OF WHICH IS USED FOR ANIMAL FEED AND TWOTHIRDS FOR MALTING A METRIC TON OF BARLEY EQUALS 459 BUSHELS CANADIAN FARMERS HAVE BEEN REQUIRED TO MARKET THEIR BARLEY IN THE US THROUGH THE CANADIAN WHEAT BOARD A GOVERNMENT AGENCY IN THE FUTURE THEY WILL BE ABLE TO SELL THEIR CROP IN THE US EITHER THROUGH THE BOARD OR PRIVATELY GROWERS IN WESTERN CANADA ASKED FOR THE GREATER FLEXIBILITY BECAUSE THEY BELIEVE IT WILL BOOST THEIR SALES TO THE US BARLEY IS CANADA'S MAIN FEED GRAIN BUT IN THE US IT RANKS BEHIND CORN AND SORGHUM A PANEL HEADED BY PROF COLIN CARTER OF THE UNIVERSITY OF CALIFORNIA RECOMMENDED THE CHANGE IN POLICY THE GOVERNMENT OF THE PROVINCE OF ALBERTA HAS ESTIMATED THAT WESTERN CANADA'S BARLEY GROWERS MIGHT BE ABLE TO EXPORT AS MUCH AS 14 MILLION METRIC TONS ANNUALLY TO THE US 9306070023 930607 BUSINESS BRIEF DAIHATSU MOTOR CO CAR MAKER POSTS GROUP LOSS OF 574 MILLION FOR YEAR JAPAN'S DAIHATSU MOTOR CO RECORDED A CONSOLIDATED PRETAX LOSS OF 616 BILLION YEN 574 MILLION FOR THE YEAR ENDED MARCH 31 SWINGING FROM A 381 BILLLION YEN PROFIT THE PREVIOUS YEAR REVENUE WAS ROUGHLY FLAT AT 87501 BILLION YEN THE COMPANY PROVIDED FEW DETAILS IN ITS CONSOLIDATED REPORT ABOUT PERFORMANCE FOR SPECIFIC OPERATIONS OR FOR RELATED COMPANIES BUT DAIHATSU DID SAY THAT IN THE RECENT YEAR OVERSEAS SALES ACCOUNTED FOR 207 OF CONSOLIDATED REVENUE DOWN FROM 229 THE PRECEDING YEAR THE PARENT COMPANY ALONE EARLIER REPORTED WEEK THAT PRETAX AND NET EARNINGS PLUNGED INTO THE RED IN THE LATEST FISCAL YEAR AS IT STRENGTHENED DEVELOPMENT AND PRODUCTION FACILITIES WHILE THE DOMESTIC ECONOMY DROPPED OFF MORE THAN EXPECTED 9306070022 930607 WHAT'S NEWS BUSINESS AND FINANCE INTEL WON A LEGAL RULING GIVING IT A NEW WEAPON AGAINST ITS LEADING RIVAL ADVANCED MICRO DEVICES A CALIFORNIA APPEALS COURT GUTTED A 1992 ARBITRATOR'S AWARD AND REVOKED AMD'S RIGHT TO SELL INTEL'S 386 MICROPROCESSOR INTEL IS NOW FREE TO PRESS A COPYRIGHT SUIT THAT COULD BURDEN AMD WITH A DAMAGE AWARD TOPPING 1 BILLION US CHIP MAKERS SAID WASHINGTON SHOULD NO LONGER PRESSURE JAPAN TO OPEN ITS MARKET THE TURNAROUND BY THE US COMPANIES WAS ACCOMPANIED BY A DECLARATION OF VICTORY IN THEIR EFFORT TO INCREASE SALES IN JAPAN WORKERMANAGEMENT TEAMS WERE DEALT A MAJOR BLOW BY THE NLRB WHICH ORDERED DUPONT TO DISBAND SEVEN SUCH PANELS AND INSTEAD TO WORK WITH ITS CHEMICAL WORKERS UNION AT THE SAME TIME THE BOARD ATTEMPTED TO LAY OUT HOW COMPANIES CAN SET UP THE INCREASINGLY POPULAR TEAMS CLINTON'S PROPOSED INCOMETAX INCREASES SHOULDN'T BE RETROACTIVE SAID SENATE FINANCE CHAIRMAN MOYNIHAN THE DEMOCRATIC SENATOR ALSO STATED THAT SPENDING FOR THE COMING FIVE YEARS SHOULD BE CUT 51 BILLION MORE THAN THE PRESIDENT ORIGINALLY SOUGHT THE JOBLESS RATE EASED TO 69 IN MAY FROM 7 IN THE PRIOR THREE MONTHS DESPITE A DROP IN MANUFACTURING PAYROLLS 209000 NEW JOBS WERE CREATED SUGGESTING THAT THE ECONOMY ISN'T AS WEAK AS MANY THOUGHT INTEREST RATES SHOT UP FOLLOWING THE JOBS REPORT AND STOCKS ENDED MIXED THE DOW JONES INDUSTRIAL AVERAGE EDGED UP 027 POINT TO 354514 THE TREASURY'S 30YEAR BOND LOST 5/8 POINT AS ITS YIELD CLIMBED TO 691 AIRLINES MAY BE SUED BY PASSENGERS BUMPED FROM OVERBOOKED FLIGHTS A US COURT RULED INDUSTRY OFFICIALS SAID THE DECISION WHICH SO FAR APPLIES ONLY TO SEVERAL WESTERN STATES ISN'T LIKELY TO HAVE A MAJOR FINANCIAL IMPACT ON CARRIERS BUT COULD BRING ABOUT REVIEWS OF ADVANCEBOOKING PRACTICES INSURER KEMPER IS NEGOTIATING TO SELL ITS UNDERACHIEVING BROKERAGE UNIT KEMPER SECURITIES POSSIBLY TO A EUROPEAN BANK OFFICIALS AT THE PARENT ARE FED UP WITH THE UNIT'S LOSSES AND A SERIES OF LEGAL JUDGMENTS AGAINST IT MCDONNELL DOUGLAS SECURED A 25 BILLION SALE OF 34 FIGHTER JETS TO SWITZERLAND AFTER VOTERS THERE APPROVED THE DEAL IN A CONTENTIOUS NATIONAL REFERENDUM BUT FUTURE FOREIGN SALES OF THE F/A18 HORNET AIRCRAFT WILL BE DIFFICULT FOR THE CONTRACTOR TO NAIL DOWN RAWSUGAR PRICES ARE EXPECTED TO INCREASE IN THE WEEKS AHEAD FOLLOWING CUBA'S ANNOUNCEMENT THAT BECAUSE OF STORM DAMAGE IT WILL BE UNABLE TO FULFILL CURRENT DELIVERY CONTRACTS WITH ITS FOREIGN CLIENTS INCLUDING RUSSIA HEWLETTPACKARD WILL BEGIN SELLING TODAY A SMALL LIGHTWEIGHT NOTEBOOK COMPUTER THAT IT HOPES WILL PROVIDE AN ENTRY INTO A FASTGROWING MARKET THE COMPANY HASN'T BEEN ABLE TO CRACK GERMAN AUTO MAKER BMW CONSOLIDATED US MANAGEMENT OPERATIONS AND NAMED THREE SENIOR EXECUTIVES AS IT PREPARES TO ENTER A STAGE OF EXPANSION IN THE NORTH AMERICAN MARKET OLYMPIA & YORK'S US UNIT FACES THE POSSIBLE RESIGNATION OF ITS CEO JOHN ZUCCOTTI WHO THREATENED TO QUIT UNLESS THE INSOLVENT CONCERN'S CANADIAN EQUITY HOLDERS STOP FIGHTING OVER THE MAKEUP OF A BOARD FOR THE UNIT US AUTO MAKERS PLAN TO BOOST THIRDQUARTER OUTPUT BY 177 FROM THE YEAREARLIER LEVEL A SIGN THAT THEY BELIEVE THE RECENT SURGE IN VEHICLE SALES IS SUSTAINABLE BUT SOME ANALYSTS CAUTION THAT DEMAND IN THE QUARTER MAY NOT MEET INDUSTRY EXPECTATIONS WESTERN FEDERAL SAVINGS & LOAN WAS SEIZED BY FEDERAL REGULATORS MARKING A RARE FINANCIAL REVERSAL FOR THE THRIFT'S MAJOR SHAREHOLDER FORMER TREASURY SECRETARY AND LEVERAGED BUYOUT PIONEER WILLIAM E SIMON UNITED AIRLINES AND NORTHWEST AIRLINES SUFFERED A SETBACK IN THEIR BIDS TO PURCHASE USAIR'S UK ROUTES AND TRANSFER THEM TO LUCRATIVE ROUTES THAT THEY CURRENTLY DON'T SERVE BONDS LEHMAN BROTHERS TREASURY INDEX 511011 OFF 2939 COMMODITIES OIL 1977 A BARREL UP 3 CENTS DOW JONES FUTURES INDEX 12130 OFF 037 SPOT INDEX 12022 UP 019 DOLLAR 10775 YEN UP 049 16265 MARKS UP 00270 9306070021 930607 CENTERBANK UNIT TO ACQUIRE ASSETS OF BENEFICIAL UNIT BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL CENTERBANK SAID ITS MORTGAGE BANKING UNIT SIGNED A LETTER OF INTENT TO PURCHASE THE ASSETS OF BENEFICIAL MORTGAGE CORP IN A CASH TRANSACTION TERMS OF THE PACT WEREN'T DISCLOSED CENTERBANK MORTGAGE CO'S BID FOR THE UNIT OF BENEFICIAL CORP WILMINGTON DEL SURPRISED THOSE WHO EXPECTED A BIGGER MORTGAGE BANKING PLAYER TO ACQUIRE THE 16 BILLION LOAN PORTFOLIO I WOULD HAVE EXPECTED SOMEONE WITH BETTER ECONOMIES OF SCALE TO BUY THIS BUSINESS SAID GARY GORDON AN ANALYST WITH PAINEWEBBER INC WHO FOLLOWS BENEFICIAL THE MORTGAGE BUSINESS CONTINUES TO BECOME MORE COMPETITIVE AND SIZE CONTINUES TO BE MORE IMPORTANT CENTERBANK WHICH IS BASED IN WATERBURY CONN SAID A SIGNED PURCHASE AGREEMENT WOULD BE COMPLETED IN THE NEAR FUTURE THE ACQUISITION WOULD PROVIDE CENTERBANK WHICH HAS A STRONG NEW ENGLAND PRESENCE WITH AN ENTRY INTO THE MIDWEST AND WESTERN MARKETS IT ALSO WOULD INCREASE CENTERBANK MORTGAGE'S LOANORIGINATION CAPACITY TO ABOUT 3 BILLION AND BOOST ITS PORTFOLIO TO ABOUT 71 BILLION AS PART OF THE PURCHASE AGREEMENT CENTERBANK MORTGAGE ALSO WILL ACQUIRE THE BENEFICIAL UNIT'S CORRESPONDENT LOAN NETWORK WHICH PRODUCED ABOUT 800 MILLION IN FIRST MORTGAGE LOANS IN 1992 ALSO INCLUDED IN THE PURCHASE ARE LOANS SCHEDULED FOR RESALE IN THE SECONDARY MARKET AND OTHER SPECIFIED ASSETS IN JANUARY BENEFICIAL SAID IT PLANNED TO CLOSE BENEFICIAL MORTGAGE POINTING OUT THAT THE OPERATION HAD BEEN UNPROFITABLE SINCE IT BEGAN IN 1984 IN 1991 THE UNIT HAD A LOSS OF 19 MILLION AND 1992 LOSSES ARE ESTIMATED AT ABOUT 10 MILLION BENEFICIAL SAID THE COMPANY SAID IN JANUARY THAT THE UNIT NEVER GOT LARGE ENOUGH TO ACHIEVE NECESSARY ECONOMIES OF SCALE THAT WOULD TURN A PROFIT CENTERBANK HOWEVER SAID IT SAW THE BENEFICIAL PORTFOLIO AS A POTENTIAL MONEYMAKER CENTERBANK MORTGAGE IS WELL ESTABLISHED IN THIS BUSINESS SAID A SPOKESWOMAN AND WE HAVE THE CAPACITY TO ADD TO SERVICING AND ORIGINATION THIS WILL MAKE CENTERBANK INCREMENTALLY MORE PROFITABLE BENEFICIAL A FINANCE AND INSURANCE COMPANY SAID IT WILL ACTIVELY SEEK NEW JOBS FOR THE 126 EMPLOYEES AT THE NEWARK DEL MORTGAGE UNIT A SPOKESMAN SAID SEVERAL OF THE WORKERS HAD BEEN OFFERED JOBS AT CENTERBANK AND SOME OTHERS HAD RECEIVED OFFERS TO WORK IN OTHER BENEFICIAL BUSINESSES BENEFICIAL SAID THAT AN UNSPECIFIED PROVISION HAD BEEN TAKEN IN 1992 TO COVER THE CESSATION OF THE MORTGAGE BUSINESS AND THAT IT EXPECTED THE LOSS RECORDED FROM THE SALE AND EMPLOYEE SEVERANCE WILL FALL WELL WITHIN THE PROVISION IN NATIONAL OVERTHECOUNTER TRADING FRIDAY CENTERBANK SHARES CLOSED AT 8125 UP 125 CENTS 9306070020 930607 WESTERN FEDERAL IS SEIZED BY REGULATORS IN A RARE REVERSAL FOR WILLIAM SIMON BY CHRISTIAN HILL STAFF REPORTER OF THE WALL STREET JOURNAL FEDERAL REGULATORS SEIZED WESTERN FEDERAL SAVINGS & LOAN ASSOCIATION FRIDAY A RARE FINANCIAL REVERSAL FOR ITS MAJOR SHAREHOLDER FORMER TREASURY SECRETARY AND LEVERAGED BUYOUT PIONEER WILLIAM E SIMON THE THRIFT BASED IN MARINA DEL REY NEAR LOS ANGELES FAILED BECAUSE OF LARGE LOSSES ON APARTMENT LOANS AMONG OTHER THINGS IT HAD A LOSS OF 73 MILLION LASTAR ON ABOUT 4 BILLION OF ASSETS AND FURTHER LOSSES THIS YEAR THAT IT DECLINED TO DISCLOSE AT THE END OF 1992 NONPERFORMING ASSETS WERE FOUR TIMES ITS TANGIBLE EQUITY CAPITAL OF 70 MILLION MR SIMON COULDN'T BE REACHED TO COMMENT OVER THE WEEKEND HIS SON WILLIAM E SIMON JR SAID IN A STATEMENT THAT THE SIMON FAMILY REGRETS THE LOSS OF ITS SUBSTANTIAL CAPITAL INVESTMENT IN WESTERN FEDERAL HE DECLINED TO BE SPECIFIC ABOUT THE LOSS BUT IT HAS BEEN ESTIMATED THAT THE FAMILY INVESTED 40 MILLION IN THE THRIFT THE YOUNGER SIMON BLAMED THE FAILURE IN PART ON THE UNILATERAL AND WRONGFUL REPUDIATION BY FEDERAL REGULATORS OF THE ORIGINAL 1988 CAPITAL AGREEMENT UNDER WHICH THE SIMONS AND OTHER INVESTORS BOUGHT WESTERN FEDERAL AND A DEFUNCT THRIFT BELL SAVINGS OF SAN MATEO CALIF FOR A TOTAL OF 210 MILLION THE THRIFTS WERE MERGED AND PLACED IN A HOLDING COMPANY WESTFED HOLDINGS THE OTHER PARTNERS INCLUDED PRESTON MARTIN FORMER VICE CHAIRMAN OF THE FEDERAL RESERVE BOARD AND GERALD PARSKY A LOS ANGELES ATTORNEY ROBERT W MACDONALD WESTFED HOLDINGS' CHAIRMAN SAID THAT REGULATORS RENEGED ON THE CAPITAL AGREEMENT IN 1989 WHEN THE PASSAGE OF CONGRESSIONAL LEGISLATION REQUIRED HIGHER CAPITAL STANDARDS FOR THRIFTS THE COMPANY DICKERED WITH THE FEDERAL OFFICE OF THRIFT SUPERVISON FOR THE NEXT THREE YEARS WITH THE REGULATORS REJECTING A FINAL CAPITAL PLAN THURSDAY MR MACDONALD SAID THE OTS DEMANDED THAT WESTERN FEDERAL BE RECAPITALIZED SO THAT IT WOULD HAVE A SOCALLED RISKBASED CAPITAL RATIO OF 9 OF ASSETS AND SOCALLED CORE CAPITAL EQUAL TO 5 AT THE END OF 1992 THE THRIFT HAD CORE CAPITAL OF 214 AND RISK CAPITAL OF 444 THE THRIFT'S SEIZURE MR MACDONALD ASSERTED REPRESENTED A REGULATORY DOUBLECROSS THE WESTERN FEDERAL LOSS IS THE MOST PUBLIC BLOT ON MR SIMON'S FINANCIAL ESCUTCHEON AFTER LEAVING HIS TREASURY POST HE GAINED FAME BY BUILDING A LARGE FORTUNE FROM A SERIES OF EXTRAORDINARILY SUCCESSFUL LEVERAGED BUYOUTS DONE WITH HIS PARTNER RAY CHAMBERS A NEWARK NJ ACCOUNTANT MR SIMON DISSOLVED THAT PARTNERSHIP IN 1985 AND BEGAN MAKING INVESTMENTS IN BANKS AND THRIFTS IN CALIFORNIA AND HAWAII HE'S HAD MIXED LUCK WITH THOSE SELLING A THRIFT AND A BANK IN HAWAII FOR RETURNS THREE TO FIVE TIMES HIS EQUITY STAKES BUT TAKING A BATH ON WESTERN FEDERAL AND STRUGGLING WITH ANOTHER CALIFORNIA THRIFT SOUTHERN CALIFORNIA SAVINGS IN LOS ANGELES MR SIMON AND OTHER INVESTORS RECAPITALIZED SOCAL IN JULY AND THE YOUNGER MR SIMON SAYS IT IS NOW DOING FINE 9306070019 930607 FAR BE IT FROM US TO BE INTERESTED IN SUCH TRIVIAL BACKBITING GOSSIP BY YUMIKO ONO STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO PSST WANNA HEAR THE LATEST CATTY COMMENT ABOUT JAPAN'S CROWN PRINCESSTOBE JAPAN'S BOLD MAGAZINE EDITORS ARE DISHING UP SOME OF THE JUICIEST TIDBITS AROUND BY QUOTING THE US PRESS AS THE JAPANESE MEDIA REVERENTIALLY PREVIEW THE WEDNESDAY MARRIAGE OF CROWN PRINCE NARUHITO TO MASAKO OWADA A HARVARDEDUCATED DIPLOMAT SOME MAGAZINES ARE TITILLATING THEIR READERS WITH IMPORTED BARBS RUDE COVERAGE OF THE CROWN PRINCE'S MARRIAGE BY FIRSTRATE AMERICAN MAGAZINES CLUCKS A HEADLINE IN SHUKAN BUNSHUN A WEEKLY NEWS MAGAZINE WHY DOESN'T THE IMPERIAL HOUSEHOLD AGENCY COMPLAIN THE FIVEPAGE ARTICLE THEN DETAILS THE OUTRAGES COMMITTED BY VANITY FAIR THE NEW YORKER AND NEWSWEEK THERE ARE REFERENCES TO THE FUTURE EMPEROR'S DIMINUTIVE STATURE 5 FEET 4 INCHES AND TO MS OWADA'S CROOKED TEETH NARUHITO WE LEARN IS ACCUSED ABROAD OF BEING A MAMA'S BOY AND GASP MS OWADA ONCE TOLD FRIENDS THE PRINCE WASN'T HER TYPE ANOTHER WEEKLY TAKES THE NEW YORKER TO TASK FOR DISCUSSING MS OWADA'S LOOKS TOO FRANKLY AND QUOTES IT AS REPORTING SHE HAS BEEN SAID TO RESEMBLE A FILIPINA OR A NEPALESE AT TOKYO JOURNAL AN ENGLISHLANGUAGE MONTHLY LARGELY EDITED BY FOREIGNERS BUT PUBLISHED BY A JAPANESE COMPANY EDITORS WERE TOLD TO TONE DOWN THE CONTENT OF A RECENT ARTICLE POKING FUN AT THE YOUNG ROYAL COUPLE THE PUBLISHER FELT UNCOMFORTABLE THAT WE WERE GOING BEYOND ACCEPTABLE LIMITS SAYS GREGORY STARR THE MAGAZINE'S EDITOR OF COURSE NOT ALL JAPANESE ARE AFRAID TO SPEAK OUT SUNDAY MAINICHI ANOTHER WEEKLY QUOTES A FORMER IMPERIAL SERVANT AS SAYING MS OWADA TALKS TOO MUCH IN THE PRESS CONFERENCE ANNOUNCING THEIR ENGAGEMENT THE ARTICLE SAYS SHE SPOKE FOR NINE MINUTES 37 SECONDS TO HIS NINE MINUTES NINE SECONDS BUT LESEMAJESTE IS RISKY BUSINESS IN MODERN JAPAN SO MOST MAGAZINES LEAVE THE TATTLING TO THE FOREIGN PRESS AFTER NEWSWEEK USED THE HEADLINE RELUCTANT PRINCESS ON A COVER STORY ABOUT MS OWADA A POLICEMAN WARNED THE MAGAZINE'S TOKYO BUREAU CHIEF TO KEEP A LOW PROFILE BECAUSE ROYALREVERING RIGHTWINGERS WERE UPSET ABOUT THE ARTICLE THE COVER OF THE JAPANESE VERSION OF NEWSWEEK PLAYED IT SAFE BIRTH OF A PRINCESS THE PECULIAR JAPANESE CIRCUMSTANCES BEHIND THE ROYAL WEDDING 9306070018 930607 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT PNC BANK NA 500 MILLION OF BANK NOTES DUE SEPT 12 1994 PRICED INITIALLY AT PAR TO YIELD 39 THE NOTES WILL BE REOFFERED AT VARIOUS PRICES THROUGH JP MORGAN SECURITIES INC THE NONCALLABLE ISSUE IS RATED DOUBLEA3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP PNC BANK NA IS A UNIT OF PNC BANK CORP BOSTON 188 MILLION MORTGAGE SERIES B REVENUE REFUNDING BONDS FOR BOSTON CITY HOSPITAL PRICED BY A MERRILL LYNCH & CO GROUP THE BONDS WHICH ARE INSURED BY THE FEDERAL HOUSING AUTHORITY WERE GIVEN YIELDS THAT RANGE FROM 36 IN 1995 TO 6 IN 2023 THEY HAVE BEEN RATED DOUBLEA BY MOODY'S AND DOUBLEAMINUS BY S&P OLD STONE CREDIT CORP 1515 MILLION OF HOMEEQUITYLOAN ASSETBACKED SECURITIES PRICED IN TWO PARTS THROUGH A SPECIALPURPOSE VEHICLE OLD STONE CREDIT CORP HOME EQUITY LOAN TRUST 19932 ACCORDING TO MCM CORPORATEWATCH PRUDENTIAL SECURITIES INC LED THE OFFERING THE SERVICER OF LOANS IS OLD STONE CREDIT THE 1369 MILLION IN CLASS A1 CERTIFICATES WITH A 31YEAR AVERAGE LIFE WERE PRICED AS 6025S AT 99 30/32 TO YIELD 6088 A 143BASISPOINT SPREAD ABOVE THE TREASURY'S THREEYEAR NOTE THE 134 MILLION IN CLASS B1 CERTIFICATES WITH A 31YEAR AVERAGE LIFE WERE PRICED AS 62S AT 99 31/32 TO YIELD 626 A 160BASISPOINT SPREAD ABOVE THE TREASURY'S THREEYEAR NOTE BOTH THE A1 AND THE B1 CERTIFICATES WERE RATED TRIPLEA BY MOODY'S AND S&P BASED ON A 100 INSURANCE GUARANTEE PROVIDED BY FINANCIAL GUARANTY INSURANCE CO THE DEAL ALSO INCLUDES A 12 MILLION PLANNED AMORTIZATION INTERESTONLY CLASS DETAILS ON THE CERTIFICATES WERE NOT PROVIDED KINGDOM OF SWEDEN SOVEREIGN 50 BILLION YEN OF 4625 EUROBONDS DUE FEB 4 1998 VIA NOMURA INTERNATIONAL PLC REOFFERED AT 9944 PLUS 44 DAYS' ACCRUED INTEREST TO YIELD 476 BONDS WILL TRADE INTERCHANGEABLY WITH 100 BILLION YEN OF IDENTICAL OUTSTANDING BONDS FEES NOT DISCLOSED TECPETROL SA ARGENTINA 60 MILLION OF 9875 EUROBONDS DUE JUNE 24 1998 REOFFERED AT 99903 VIA CHASE INVESTMENT BANK LTD YIELD 99 SEMIANNUAL SPREAD 470 BASIS POINTS ABOVE COMPARABLE US TREASURY NOTE FEES 1125 POINTS 9306070017 930607 EC GROUP APPROVES KLOECKNER SUBSIDIARY'S RESTRUCTURING PLAN SPECIAL TO THE WALL STREET JOURNAL BRUSSELS THE EUROPEAN COMMUNITY COMMISSION FRIDAY CLEARED THE RESTRUCTURING PLANS OF THE STEEL SUBSIDIARY OF GERMANY'S KLOECKNERWERKE AG THE MEASURES APPROVED PERTAIN TO THE COMPANY'S KLOECKNER STAHL GMBH UNIT KLOECKNERWERKE HAS SOUGHT A DEBT RESTRUCTURING FOR THE PARENT COMPANY AND FOR ITS TWO STEEL DIVISIONS KLOECKNER STAHL AND KLOECKNER EDELSTAHL GMBH IN A STATEMENT THE COMMISSION SAID IT WOULD GIVE UP 40 OF A 175 MILLION MARK 1093 MILLION LOAN MADE TO KLOECKNER THE COMMISSION SAID IT APPROVED THE PLAN AFTER KLOECKNER AGREED TO FURTHER RESTRUCTURING TO IMPROVE THE FINANCIAL VIABILITY OF THE PLAN THE COMMISSION HAD HELD OUT ON APPROVING THE RESTRUCTURING PLAN BECAUSE IT WANTED MORE AGGRESSIVE CAPACITY CUTS UNDER THE PLAN KLOECKNER WILL CLOSE ONE BLAST FURNACE AT ITS BREMEN GERMANY STEEL PLANT THAT WILL CUT PIG IRON CAPACITY BY 33 AND REDUCE CRUDE STEEL CAPACITY BY 20 IN ADDITION THERE WILL BE A CUT OF 500000 METRIC TONS A YEAR IN HOTSTRIP ROLLING MILL CAPACITY IN THE DEBT RESTRUCTURING UNSECURED CREDITORS OWED MORE THAN 10000 MARKS WOULD RECEIVE 40 OF THE TOTAL THOSE OWED LESS THAN 10000 MARKS WOULD RECEIVE FULL PAYMENT AND SECURED CREDITORS SUCH AS THE EC WOULD GET BACK 60 KLOECKNER OWES 27 BILLION MARKS MAINLY TO BANKS A CONSORTIUM OF EUROPEAN STEELMAKERS LED BY GERMANY'S LARGEST STEELMAKERS THYSSEN AG AND FRIED KRUPP AG HOESCHKRUPP HAVE SAID THEY WANT TO TAKE OVER KLOECKNER'S COLD ROLLING MILL IN BREMEN CREDITORS OF KLOECKNERWERKE ARE SCHEDULED TO MEET TODAY AND THOSE OF THE TWO STEEL UNITS SOON AFTERWARD THE REVAMPING PLAN MUST BE APPROVED BY 80 OF CREDITORS FOR KLOECKNER TO AVOID A BANKRUPTCY FILING THE COMMISSION'S APPROVAL HAD BEEN CONSIDERED ESSENTIAL FOR KLOECKNER TO RECEIVE CREDITOR APPROVAL INDUSTRY OBSERVERS SAID APPROVAL OF THE DEBT REDUCTION IS NOW VERY LIKELY IN DUISBERG GERMANY KLOECKNER WELCOMED THE COMMISSION'S DECISION KLOECKNER SAID IT ALSO WAS PREPARED TO CUT CAPACITY FURTHER IN THE CONTEXT OF A COOPERATION PACT WITH ANOTHER STEELMAKER KLOECKNER DIDN'T ELABORATE 9306070016 930607 ECONOMY DUPONT IS TOLD IT MUST DISBAND NONUNION PANELS WORKERMANAGER TEAMS SET BACK IN RULING BY US LABOR BOARD BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN A MAJOR BLOW TO CORPORATE WORKERMANAGEMENT TEAMS THE NATIONAL LABOR RELATIONS BOARD ORDERED DUPONT CO TO DISBAND SEVEN SUCH PANELS AND TO DEAL INSTEAD WITH THE COMPANY'S CHEMICAL WORKERS UNION AT THE SAME TIME THE BOARD ATTEMPTED TO LAY OUT HOW COMPANIES CAN SET UP THE INCREASINGLY POPULAR LABORMANAGEMENT TEAMS THE DECISION HAS BEEN EAGERLY AWAITED BY US COMPANIES BECAUSE IT IS THE FIRST MAJOR CASE TO ADDRESS THE ISSUE OF SAFETY COMMITTEES IN CORPORATIONS WHERE A UNION IS PRESENT LATE LAST YEAR THE NLRB RULED THAT WORKERMANAGEMENT TEAMS AT ELECTROMATION INC OF ELKHART IND WERE ILLEGAL SHAM UNIONS BECAUSE THEY SET UP ACTION COMMITTEES AT A TIME WHEN THE TEAMSTERS UNION WAS TRYING TO ORGANIZE THE PLANT THE DUPONT RULING IS A BLOW TO THE PHILOSOPHY OF LABOR SECRETARY ROBERT REICH WHO IS A STRONG ADVOCATE OF WORKERMANAGEMENT TEAMS AS A WAY OF SOLVING WORKPLACE PROBLEMS MR REICH HAS SAID REPEATEDLY THAT HE WOULD SEEK LEGISLATION PROTECTING THE SANCTITY OF WORKERMANAGEMENT TEAMS IF THE NLRB'S RULINGS HAVE THE EFFECT OF STIFLING SUCH GROUPS SUCH LEGISLATION WOULDN'T BE EASY TO ENACT LABOR UNIONS WOULD FIGHT EFFORTS TO CURTAIL THEIR ALREADY DWINDLING MUSCLE WITHIN CORPORATIONS AND THEY STILL HOLD MUCH SWAY WITHIN THE DEMOCRATIC PARTY THE NLRB WAS UNANIMOUS IN DECIDING THAT THE DUPONT SAFETY AND FITNESS COMMITTEES WERE ILLEGAL LABOR ORGANIZATIONS UNDER THE NATIONAL LABOR RELATIONS ACT OF 1935 THE PANELS MADE DECISIONS CONCERNING SAFETY IN DUPONT'S DEEPWATER NJ FACILITY BUT THOSE DETERMINATIONS WERE SUBJECT TO THE APPROVAL OF MANAGEMENT MEMBERS ON THE TEAMS THE BOARD SAID THE UNION HAS SEVERAL THOUSAND MEMBERS ALL AT THE DEEPWATER FACILITY DUPONT MANAGEMENT DOMINATED THE COMMITTEES IN OTHER WAYS AS WELL THE NLRB DECIDED FOR EXAMPLE THE WILMINGTON DELBASED CHEMICAL COMPANY SET THE SIZE OF EACH PANEL AND DETERMINED WHICH EMPLOYEES WOULD STAFF THE COMMITTEE IF MORE THAN THE REQUIRED NUMBER VOLUNTEERED IT ALSO RESERVED THE RIGHT TO SET UP OR DISBAND ANY OF THE COMMITTEES CUMULATIVELY THE BOARD SAID THAT MEANT THE COMMITTEES' ADMINISTRATION WAS DOMINATED BY DUPONT RATHER THAN BEING AN EQUAL LABORMANAGEMENT TEAM MOREOVER SOME COMMITTEES DEALT WITH ISSUES WHICH WERE IDENTICAL TO THOSE DEALT WITH BY THE CHEMICAL WORKERS ASSOCIATION AND WITH EVEN GREATER SUCCESS THE BOARD SAID FOR EXAMPLE THE ANTIKNOCKS AREA SAFETY COMMITTEE GOT A NEW WELDING SHOP FOR A WORKER WHO HAD COMPLAINED OF POOR VENTILATION WHILE THE UNION'S ATTEMPT TO RESOLVE THE SAME PROBLEM HAD FAILED SIMILARLY THE COMMITTEES DECIDED ON INCENTIVES AND AWARDS FOR WORKERS AREAS THE NLRB SAID WERE MANDATORY SUBJECTS OF BARGAINING STILL THE BOARD ATTEMPTED TO CREATE AN OUTLINE FROM WHICH COMPANIES COULD SET UP TEAMS FOR INSTANCE SUCH COMMITTEES WOULD NEED TO AVOID DEALING WITH MANAGEMENT AS A UNION MIGHT SPECIFICALLY THE BOARD INDICATED THAT THE COMMITTEES SHOULD EXIST FOR THE SOLE PURPOSE OF IMPARTING INFORMATION OR PLANNING EDUCATIONAL PROGRAMS IN ADDITION THE BOARD SUGGESTED THAT MANAGEMENT NOT DOMINATE THE PANELS BUT RATHER BE A PARTICIPANT WITH A COMMENSURATE NUMBER OF VOTES NOTABLY A MINORITY ONLY THREE BOARD MEMBERS PARTICIPATED IN THE RULING WITH CHAIRMAN JAMES STEPHENS RECUSING HIMSELF BOARD MEMBER DENNIS DEVANEY ISSUED A SEPARATE CONCURRING OPINION IN WHICH HE SAID HE READ THE LAW MORE LIBERALLY THAN HIS COLLEAGUES IN REGARD TO LABORMANAGEMENT TEAMS BUT THAT HE ALSO FOUND DUPONT'S ACTIONS PLAINLY UNLAWFUL OF THE THREE MEMBERS VOTING ON THE CASE CLIFFORD OVIATT JR ALREADY HAS LEFT THE NLRB ANOTHER IS SERVING A RECESS APPOINTMENT AND IS LIKELY TO BE REPLACED SOON BY PRESIDENT CLINTON DUPONT OFFICIALS SAY THE SEVEN COMMITTEES IN DISPUTE WERE DISBANDED ALMOST A YEAR AGO THE BOARD'S DECISION UPHELD AN ADMINISTRATIVE RULING ISSUED LAST MAY DUPONT DISPANDED THE SEVEN COMMITTEES SOON AFTER THAT ADMINISTRATIVE RULING NOW THE COMPANY AND UNION AGREE IN ADVANCE ON ISSUES SUCH AS COMMITTEE MAKEUP AND PROCEDURE BEFORE ESTABLISHING A SAFETY COMMITTEE COMPANY OFFICIALS SAID THOMAS L SAGER DUPONT'S MANAGING COUNSEL SAID THE COMPANY WILL CONSIDER WHETHER TO APPEAL THE BOARD'S DECISION TO FEDERAL APPEALS COURT LATE LAST NIGHT THE LAWYER FOR THE CHEMICAL WORKERS THEODORE LIEVERMAN SAID THE UNION IS THE REPRESENTATIVE OF THE EMPLOYEES FOR ALL PURPOSES OUR CASE STANDS FOR A VERY SIMPLE FUNDAMENTAL PROPOSITION THAT IF YOU WANT LABORMANAGEMENT COOPERATION DEAL WITH THE UNION 9306070015 930607 MARKETING RESTAURANT REVIEW BY ELEENA DE LISSER FIRST CAME FREQUENT FLIERS NOW THERE ARE FREQUENT DINERS TAKING A CUE FROM THE AIRLINE INDUSTRY SOME FASTFOOD CHAINS INCLUDING A FEW FRANCHISEES OF MCDONALD'S HARDEES AND BURGER KING ARE DEVELOPING FREQUENTCUSTOMER CLUBS WITH EACH PURCHASE A CUSTOMER EARNS CREDITS THAT CAN BE REDEEMED FOR FREE FOOD OR MERCHANDISE PERHAPS THE MOST AMBITIOUS PROGRAM CAN BE FOUND AT ARBY'S WHICH HAS A FREQUENTCUSTOMER CLUB IN 40 RESTAURANTS IN NASHVILLE TENN PORTLAND ORE SACRAMENTO CALIF AND SALT LAKE CITY MORE THAN 30000 PEOPLE ARE MEMBERS IN THE PORTLAND AND SACRAMENTO MARKETS ALONE WHERE THE TEST BEGAN LAST FALL SAYS DAVE SHANNON DIRECTOR OF CORPORATE MARKETING ARBY'S MIAMI BEACH FLA PLANS TO EXPAND THE PROGRAM NATIONWIDE TO ITS 264 COMPANYOWNED RESTAURANTS BY YEAR'S END WHILE CUSTOMERS ARE REWARDED FOR THEIR REPEAT PATRONAGE ARBY'S BENEFITS BY LEARNING MORE ABOUT ITS CLIENTELE CONSUMERS COMPLETE MEMBERSHIP APPLICATIONS TELLING ARBY'S THEIR AGE SEX AND MENU PREFERENCES INDIVIDUAL MEMBERSHIP CARDS ARE PASSED THROUGH MAGNETIC READERS AT EACH PURCHASE GIVING THE COMPANY INFORMATION ABOUT CUSTOMER SPENDING HABITS AND FREQUENCY OF VISITS BONUSES CAN THEN BE TAILORED TO CUSTOMERS' TASTES REGULAR BUYERS OF A SALAD MIGHT RECEIVE A COUPON TOWARD A FUTURE SALAD PURCHASE AS OPPOSED TO A ROASTBEEF SANDWICH THIS IS INFORMATION WE NEVER HAD BEFORE ON OUR CUSTOMERS UNLESS WE DID A SURVEY MR SHANNON SAYS THE RESULTS SO FAR ARE PROMISING VISITS BY MEMBERS HAVE ROUGHLY DOUBLED TO THREE A MONTH SINCE THE CLUB STARTED MR SHANNON SAYS HOTELS ARE TRYING TO WHIP UP WAYS TO STREAMLINE OR REVITALIZE THEIR RESTAURANTS FOOD AND BEVERAGE OPERATIONS INCLUDING ROOM SERVICE LIQUOR BANQUET AND CATERING ACCOUNT FOR ABOUT ONEFIFTH OF HOTELS' PROFITS BUT THEIR SITDOWN RESTAURANTS ALONE OFTEN LOSE MONEY WITHOUT A STEADY STREAM OF CONVENTION OR BANQUET BUSINESS HIGH STAFFING COSTS AND OTHER OVERHEAD CAN QUICKLY EAT UP PROFITS SAYS DANIEL DANIELE DIRECTOR OF HOSPITALITY CONSULTING FOR ERNST & YOUNG IN CHICAGO SO SOME HOTELS ARE LEASING SPACE TO RESTAURANT COMPANIES LETTUCE ENTERTAIN YOU ENTERPRISES OPERATES THE PAPAGUS GREEK TAVERNA IN THE EMBASSY SUITES HOTEL IN DOWNTOWN CHICAGO SFUZZI BASED IN DALLAS RUNS AN ITALIAN RESTAURANT UNDER ITS OWN NAME IN THE LOEWS VANDERBILT PLAZA HOTEL IN NASHVILLE OTHER HOTELS ARE MOVING THEIR DINING FACILITIES TO MORE PROMINENT LOCATIONS IN CHICAGO LE MERIDIEN HOTEL HAD A FORMAL FRENCH DINING ROOM THAT WAS STRUGGLING LOCATED IN THE CITY'S AFFLUENT GOLD COAST NEIGHBORHOOD THE HOTEL IS SURROUNDED BY BARS AND RESTAURANTS SO IT CHANGED FORMATS STARTING UP A CASUAL BISTRO 18 MONTHS AGO AND MOVING IT FROM THE SECOND FLOOR TO A STREETLEVEL LOCATION WITH ITS OWN ENTRANCE SIDEWALK SEATING AND FLOORTOCEILING WINDOWS FACING THE STREET THE BISTRO HAS BECOME POPULAR AMONG AREA RESIDENTS AND HOTEL GUESTS SAYS IKE JANACEK THE HOTEL'S EXECUTIVE ASSISTANT MANAGER CLUBHOUSE INNS OF AMERICA BASED IN OVERLAND PARK KAN HAS ESTABLISHED THE CLUBGRILL A COOKYOUROWN EATERY IN TWO OF ITS PROPERTIES CUSTOMERS SELECT THE MEAT CHICKEN OR SHRIMP THEY WOULD LIKE TO EAT AND COOK IT TO THEIR OWN TASTE ON THE GRILL A STEAK DINNER WITH SALAD COSTS 1095 FOOD AND BEVERAGE OPERATIONS IN A HOTEL ARE SOMEWHAT OF A RISKY BUSINESS AND THIS SOLVED THE PROBLEM NICELY SAYS PAT D'AMICO CLUBHOUSE'S DIRECTOR OF MARKETING ABOUT 30 OF GUESTS USE THE CLUBGRILL HE SAYS WE WANT TO SELL ROOMS AND THIS IS SOMETHING THAT WILL MAKE HOTEL GUESTS WANT TO COME BACK WAITERS AND WAITRESSES DON'T JUST BRING CUSTOMERS THEIR MEALS ANYMORE MORE RESTAURANTS ARE GIVING THEIR FOOD SERVERS GREATER AUTHORITY TO KEEP CUSTOMERS HAPPY SAYS RON PAUL PRESIDENT OF TECHNOMIC A FOODSERVICE CONSULTING FIRM IN CHICAGO WITH BUSINESS TIGHT HE SAYS MANY OPERATORS ARE REALIZING THAT THEIR SERVERS CAN BE USED AS A FRONTLINE SALES FORCE IT'S VERY EXPENSIVE TO GET NEW CUSTOMERS TO COME IN AND TRY YOU MR PAUL SAYS IN A SLOWGROWTH ECONOMY YOU'D BETTER TAKE CARE OF THE ONES YOU'VE GOT TGI FRIDAYS A DALLASBASED UNIT OF CARLSON COS IN MINNEAPOLIS TRAINS ITS WAITERS AND WAITRESSES TO DO WHATEVER IT TAKES TO PLEASE A CUSTOMER SAYS NICK GALANOS EXECUTIVE VICE PRESIDENT OF OPERATIONS EVEN IF THAT MEANS RUNNING TO THE SUPERMARKET TO GET A CAN OF SARDINES TO MAKE A SARDINE SANDWICH HE SAYS AT ATLANTA'S KUDZU CAFE WHICH FEATURES SOUTHERN CUISINE WAITERS AND WAITRESSES HAVE THE DISCRETION TO OFFER CUSTOMERS A FREE DESSERT OR MEAL IF THEY HAVE TO WAIT TOO LONG FOR THEIR FOOD THE IMPORTANT THING SAYS MICHAEL ZAJAC THE MANAGER IS THAT THE STAFF HAS THE FLEXIBILITY TO HANDLE A PROBLEM QUICKLY WITHOUT HAVING TO ASK FOR PERMISSION TO FIX IT WE'RE IN THIS FOR THE LONG TERM MR ZAJAC SAYS WE'RE BUILDING A CLIENTELE AND LOOKING AT EACH GUEST AS A LIFETIME GUEST NEW YORK CITY DINERS CAN GET RESTAURANT INFORMATION FROM FOODPHONE A SERVICE LISTING 3000 EATERIES IN THE CITY INTERACTIVE SERVICES NEW YORK UPDATES THE LISTINGS MONTHLY AND INCLUDES DESCRIPTIONS OF EACH RESTAURANT'S CUISINE LOCATION DELIVERY OPTIONS AND PRICE RANGE THE COMPANY PLANS TO START LINES IN ATLANTA BOSTON CHICAGO LOS ANGELES SAN FRANCISCO AND OTHER CITIES GRAND METROPOLITAN'S BURGER KING UNIT NOW PUBLISHES THREE QUARTERLY MAGAZINES FOR MEMBERS OF ITS KIDS CLUB THE TITLES ARE SMALL FRIES FOR AGES FIVE AND UNDER GREAT SHAKES FOR MEMBERS AGES SIX TO EIGHT AND HAVE IT YOUR WAY FOR CHILDREN NINE AND 10 YEARS OLD 9306070014 930607 INTERNATIONAL BRIEF MAZDA MOTOR CORP GROUP PRETAX PROFIT NET PLUNGED IN THE FISCAL YEAR JAPAN'S MAZDA MOTOR CORP SAID GROUP PRETAX PROFIT DROPPED 53 AND NET PROFIT PLUNGED 86 FOR THE YEAR ENDED MARCH 31 A SPOKESMAN FOR THE CAR MAKER SAID CONSOLIDATED FORECASTS FOR THE CURRENT FISCAL YEAR ARE LARGELY BASED ON SEVERE EXPECTATIONS FOR BUSINESS CONDITIONS EXPORTORIENTED CAR MAKERS FACE A FURTHER SQUEEZE ON EARNINGS AS THE YEN'S CONTINUED STRONG ADVANCE PRUNES OVERSEAS PROFITS HE SAID IN UNCONSOLIDATED EARNINGS RESULTS PREVIOUSLY REPORTED MAZDA SAID PRETAX PROFIT FELL 68 AND NET PROFIT DECLINED 72 IN THE LATEST FISCAL YEAR THE COMPANY LOWERED ITS DIVIDEND BY 20 AND PROJECTED LOSSES OF 12 BILLION YEN 112 MILLION FOR BOTH PRETAX AND NET EARNINGS THIS FISCAL YEAR CONSOLIDATED EARNINGS SHOWED 648 OF MAZDA'S SALES WERE DERIVED FROM OVERSEAS IN THE LATEST FISCAL YEAR UP FROM 616 A YEAR EARLIER 9306070013 930607 GATT GRANTS CALL FOR PANEL TO STUDY US DUTIES ON STEEL SPECIAL TO THE WALL STREET JOURNAL GENEVA THE GENERAL AGREEMENT ON TARIFFS AND TRADE AGREED TO A EUROPEAN COMMUNITY REQUEST FOR AN ARBITRATION PANEL TO EXAMINE THE LEGALITY OF PUNITIVE US DUTIES ON CERTAIN SPECIALIZED STEEL PRODUCTS THE EC SAID THE US COUNTERVEILING DUTIES ON HOTROLLED LEAD AND BISMUTH CARBON WERE EXCESSIVELY INFLATED AND VIOLATED GATT'S FAIR TRADE RULES JOSEPH PAPOVICH DEPUTY ASSISTANT US TRADE REPRESENTATIVE SAID THE GATT DECISION TO ACCEPT THE ARBITRATION REQUEST WAS ANTICIPATED HE SAID THE US HAD THE OPTION OF OPPOSING THE MOVE BUT DECIDED TO ALLOW THE GATT PROCESS TO CONTINUE EC REPRESENTATIVE PATRICK LAURENT TOLD A MEETING OF GATT'S SUBSIDIES COMMITTEE THAT THE US SYSTEM OF COUNTERVEILING DUTIES WAS SO SOPHISTICATED AND TECHNICALLY COMPLICATED THAT IT HAD LOST TOUCH WITH REALITY AS PART OF A WIDER DISPUTE OVER STEEL THE US IN JANUARY IMPOSED DUTIES ON IMPORTS OF THE SPECIALIZED PRODUCTS FROM BRITAIN FRANCE AND GERMANY THE US SAID THE DUTIES WERE NECESSARY TO COMPENSATE AMERICAN COMPANIES FOR STATE SUBSIDIES PAID TO EUROPEAN PRODUCERS ABOUT 70 MILLION OF EC EXPORTS ARE AFFECTED THE US DUTIES AMOUNT TO 65 ON FRENCH PRODUCTS 85 ON THOSE FROM GERMANY AND 26 ON BRITISH EXPORTS GATT'S THREEMEMBER PANEL HAS 60 DAYS TO ISSUE ITS DECISION WHICH IS LIKELY TO SET AN IMPORTANT PRECEDENT FOR THE OVERALL TRANSATLANTIC STEEL ROW UNDER GATT RULES ANTIDUMPING DUTIES CAN BE USED AGAINST PRODUCTS DUMPED ON FOREIGN MARKETS AT UNFAIRLY LOW PRICES COUNTERVEILING MEASURES ARE USED AGAINST IMPORTS THAT BENEFIT EXCESSIVELY FROM GOVERNMENT SUBSIDIES 9306070012 930607 MIDEAST PHOENIX WARRAVAGED KUWAIT REBOUNDS INTO RANKS OF MAJOR OIL NATIONS OPEC WORRIES ABOUT PRICES CAN IT PERSUADE EMIRATE TO REIN IN PRODUCTION A 10 BILLION RECONSTRUCTION BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL KUWAIT CITY RISING FROM THE ASHES OF THE PERSIAN GULF WAR THIS TINY EMIRATE HAS MADE AN IMPRESSIVE COMEBACK THAT IS CATAPULTING IT BACK INTO THE RANKS OF THE WORLD'S LEADING OIL PRODUCERS SOME TWO YEARS AGO JUST AFTER THE WAR IN WHICH THE USLED ALLIES DROVE IRAQI TROOPS OUT KUWAIT WAS IN SHAMBLES MORE THAN 700 OIL WELLS WERE ON FIRE TORCHED BY RETREATING IRAQI SOLDIERS OR GUSHING OUT OF CONTROL THE PROUD EMIRATE A FOUNDING MEMBER OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES EVEN HAD TO IMPORT FUEL FOR DOMESTIC USE BUT TODAY KUWAIT IS NOT ONLY AN OIL EXPORTER AGAIN IT CAN PRODUCE ALMOST AS MUCH AS IT DID BEFORE THE AUGUST 1990 IRAQI INVASION THIS SPIRITED RECOVERY IS DUE IN PART TO A MULTIBILLIONDOLLAR PROGRAM CALLED ALTAMEER ARABIC FOR RECONSTRUCTION THE REBOUND IS ALREADY HAVING AN IMPACT ON THE INTERNATIONAL OIL INDUSTRY AND OIL PRICES AS OPEC OIL MINISTERS MEET TODAY IN GENEVA THE URGENT ISSUE THEY FACE IS HOW TO SHARE WORLD OIL MARKETS WITH THE REEMERGING KUWAIT WITHOUT DRIVING DOWN PETROLEUM PRICES KUWAIT'S RECOVERY WE KNOW IS GOING VERY FAST SAYS OPEC SECRETARYGENERAL SUBROTO THE IMPACT ON THE SUPPLYDEMAND BALANCE IS QUITE CLEAR ABDULAZIZ ALJABER A 36YEAROLD ENGINEER WITH KUWAIT OIL CO IS AMONG THE KUWAITIS RESPONSIBLE FOR THE COMEBACK A GRADUATE OF WASHINGTON UNIVERSITY IN ST LOUIS HE FLED TO SAUDI ARABIA TO ESCAPE THE IRAQIS BUT RETURNED AFTER THE WAR TO HELP FIGHT THE FIRES RAGING IN THE OIL FIELDS HE IS NOW IN CHARGE OF THE NORTHERN FIELDS' PORTION OF THE ALTAMEER PROJECT STANDING NEAR THE NEW KUWAITIRAQ BORDER RECENTLY DEMARCATED BY THE UNITED NATIONS MR ALJABER POINTS TO AN OIL WELL FORMERLY OPERATED BY IRAQ IT IS ONE OF 11 THE IRAQIS DRILLED ON LAND THAT IS NOW ON KUWAIT'S SIDE OF THE DEMILITARIZED ZONE BETWEEN THE TWO COUNTRIES MINECLEARING STILL GOES ON IN THAT DESOLATE STRIP OF DESERT SOLDIERS OF ONE NATION OR ANOTHER CAN STILL BE SPOTTED WALKING IN A LINE GINGERLY PROBING FOR HIDDEN EXPLOSIVES OCCASIONALLY AN OIL WORKER AN AMERICAN IN ONE RECENT CASE STRAYS TOO CLOSE TO THE BORDER AND IS CAPTURED AND JAILED BY THE IRAQIS WHEN IT BECOMES CLEAR THAT THE UNEXPLODED MUNITIONS LEFT OVER FROM THE GULF WAR HAVE BEEN FOUND AND REMOVED FROM THE AREA THE UN WILL TURN THE 11 IRAQI WELLS OVER TO KUWAIT THE WELLS ARE MODEST BY MIDDLE EAST STANDARDS THEY CAN EACH PUMP ONLY 2000 BARRELS A DAY OR LESS AND WILL HAVE TO BE RENOVATED IRAQI SURFACE VALVES FOR EXAMPLE DIFFER FROM THE ONES USED IN KUWAIT STILL THEY WILL BE WELCOME ADDITIONS TO THE HUNDREDS ALREADY PRODUCING OIL AGAIN IN KUWAIT THEY ARE SYMBOLIC OF THE PUSH BY KUWAIT OIL THE CHIEF DOMESTIC SUBSIDIARY OF KUWAIT PETROLEUM CORP TO RESTORE OUTPUT AND EXPORTS TO PREINVASION LEVELS AND BEYOND WHATEVER THE COST THE SCOPE OF THE CLEANUP IN KUWAIT AFTER THE GULF WAR WAS UNPRECEDENTED NO ONE HAD EVER DEALT WITH OILWELL FIRES OR ANY INFERNO OF THAT MAGNITUDE GUESSES THEN WERE THAT IT WOULD TAKE UP TO FIVE YEARS TO EXTINGUISH ALL THE FIRES BUT BY NOVEMBER 1991 ONLY SEVEN MONTHS AFTER THE EFFORT BEGAN ALL WERE OUT EVEN THE KUWAITIS HAVE BEEN SURPRISED THAT THEY ARE COMING BACK SO QUICKLY BY EARLY 1992 KUWAIT FELT IT COULD GO AHEAD WITH AN ALLOUT PROGRAM TO REBUILD THE OIL SECTOR ALI AHMAD ALBAGHLI THE OIL MINISTER AND CHAIRMAN OF THE NATIONAL OIL COMPANY ESTIMATES THE COST OF THE RESTORATION AT 10 BILLION BUT ALREADY HE SAYS KUWAIT CAN PRODUCE MORE THAN 22 MILLION BARRELS DAILY BY YEAR END IT WILL BE 25 MILLION THESE INCLUDE KUWAIT'S 200000 BARRELS A DAY FROM THE NEUTRAL ZONE WHERE OUTPUT IS SHARED WITH SAUDI ARABIA EVENTUALLY THE OIL MINISTER EXPECTS CAPACITY TO REACH THAT OF THE 1970S WHEN KUWAIT BRIEFLY PRODUCED MORE THAN 35 MILLION BARRELS A DAY IN OPEC ONLY SAUDI ARABIA AND IRAN CURRENTLY CAN PUMP MORE THAN THAT WE ARE ONE OF THE MAJOR PRODUCING COUNTRIES IN THE AREA MR ALBAGHLI SAYS WHILE THIS IS GOOD NEWS FOR KUWAIT AND ITS CUSTOMERS THE EMIRATE HAS YET TO REALIZE THE FULL VALUE OF ITS NEW OIL POTENTIAL BEFORE THE 1990 INVASION KUWAIT HAD CUT BACK TO ITS OPEC QUOTA OF 15 MILLION BARRELS A DAY AFTER THE WAR KUWAIT REMAINED OUTSIDE THE QUOTA SYSTEM LAST YEAR OPEC OUTPUT GREW BY ONE MILLION BARRELS A DAY WITH NEARLY ALL THE INCREASE ACCOUNTED FOR BY KUWAIT'S RECOVERING PRODUCTION BUT BY FEBRUARY 1993 KUWAIT'S OUTPUT WAS BACK UP TO TWO MILLION BARRELS A DAY AND OTHER OPEC NATIONS WORRIED ABOUT WEAK OIL MARKETS BEGAN PRESSING THE EMIRATE TO ACCEPT A QUOTA SUCH PRESSURES HAVEN'T GONE OVER WELL IN KUWAIT THE GENERAL FEELING HERE IS THAT OTHER EXPORTERS GAINED FROM HIGHER OIL SALES AT KUWAIT'S EXPENSE DURING THE GULF CRISIS SOME KUWAITIS ARGUE THAT THE REST OF OPEC SHOULD STEP ASIDE SO KUWAIT CAN PRODUCE ENOUGH TO COMPLETE ITS REBUILDING AND GET ITS ECONOMY ROLLING IN FACT THE VERY IDEA OF OUTSIDE LIMITS ON OIL PRODUCTION HAS BECOME AN EXPLOSIVE POLITICAL ISSUE IT HAS LED TO SOME CALLS FOR KUWAIT TO PULL OUT OF OPEC WITHIN OPEC KUWAIT'S RISING OIL POWER ALSO IS BRINGING CONTROVERSY IT TRIGGERED SPIRITED DEBATE AT THE OIL MINISTERS' LAST MEETING IN FEBRUARY MR ALBAGHLI AFTER CALLS BACK TO HIS GOVERNMENT RELUCTANTLY AGREED TO TRIM OUTPUT TO 16 MILLION BARRELS A DAY TO HELP KEEP OIL PRICES FROM FALLING HE EXTRACTED WHAT HE CALLS A BINDING PROMISE THAT KUWAIT WOULD RECEIVE A HIGHER THIRDQUARTER QUOTA ALL THE WAY BACK UP TO TWO MILLION BARRELS FOR THE FIRST TIME IN OUR HISTORY WE ARE BORROWING AND WE ARE SUFFERING A BIG BUDGET DEFICIT HE SAYS ALL 12 MEMBERS OF OPEC INCLUDING THE USUALLY MODERATE SAUDI ARABIA WANT OIL PRICES TO RISE BECAUSE OF PRESSING REVENUE NEEDS THOUGH PRICES BRIEFLY HIT 40 A BARREL DURING THE GULF CRISIS OVER THE PAST TWO YEARS THEY HAVE REMAINED STABLE AT AROUND 16 TO 20 THE QUESTION OPEC FACES NOW IS WHETHER KUWAIT CAN PUMP ALL IT WANTS WITHOUT DRIVING DOWN PRICES ALTHOUGH OIL CONSUMPTION IS EXPECTED TO STRENGTHEN IN THE SECOND HALF OF THE YEAR MUCH DEPENDS ON WHETHER THE OIL COMPANIES INCREASE THEIR INVENTORIES AS THEY USUALLY DO IN THE THIRD QUARTER ESTIMATES OF DEMAND FOR OPEC OIL IN THE THIRD QUARTER RANGE AROUND 242 MILLION BARRELS A DAY ABOUT WHAT OPEC IS CURRENTLY PRODUCING PLUS WHATEVER INVENTORY INCREASES IF ANY ARE MADE COMPOUNDING THE PROBLEM IRAN AND NIGERIA WANT HIGHER QUOTAS KUWAIT IS ONLY THE FIRST OF TWO PROBLEMS CONFRONTING THE OIL MINISTERS AS A HANGOVER FROM THE PERSIAN GULF CRISIS THE OTHER IS IRAQ THE UNITED NATIONS STILL BARS IRAQ FROM EXPORTING OIL IT IS UNCERTAIN WHEN IRAQ WILL BE ABLE TO RETURN TO WORLD MARKETS BUT THE OTHER OPEC MEMBERS ARE LEERY OF SETTING A PATTERN IF THEY CUT BACK NOW TO MAKE ROOM FOR KUWAIT WHAT IS LIKELY TO HAPPEN AT THE GENEVA MEETING SAY MANY WHO FOLLOW OPEC IS THAT KUWAIT WILL BE PREVAILED UPON TO ACCEPT A QUOTA OF 18 MILLION BARRELS A DAY FOR THE THIRD QUARTER WITH A TWO MILLION ALLOTMENT HELD OUT AS A CARROT FOR THE FOURTH QUARTER I THINK KUWAIT WILL BE ACCOMMODATED GRADUALLY SAYS CYRUS H TAHMASSEBI CHIEF ECONOMIST OF ASHLAND OIL INC KUWAIT HAS OIL OPERATIONS WORLDWIDE IT PRODUCES IN SEVERAL REGIONS OF THE WORLD SELLS CRUDE IN MANY OTHER COUNTRIES OPERATES IN THE SERVICE SIDE OF THE OIL BUSINESS IN A NUMBER OF AREAS AND REFINES AND MARKETS FUELS INTERNATIONALLY KUWAIT PETROLEUM IS NOTED FOR ITS AGGRESSIVE MARKETING IN EUROPE WHERE IT HAS THOUSANDS OF SERVICE STATIONS ITS Q8 BRAND HAS BEEN WIDELY KNOWN THE SOURCE OF ALL THESE OPERATIONS IS THE GIANT OIL POTENTIAL HERE IN KUWAIT PARTICULARLY IN THE HUGE BURGAN FIELD ONE OF THE WORLD'S LARGEST A RECENT VISIT TO THE BURGAN AND THE OTHER FIELDS TURNS UP PLENTIFUL SIGNS THAT KUWAIT STILL HAS THE RESOURCE BASE TO SUPPORT HIGH CRUDE PRODUCTION DESPITE IRAQI EFFORTS TO WRECK ITS INSTALLATIONS IN PROVEN OIL RESERVES KUWAIT RANKS THIRD IN THE WORLD BEHIND SAUDI ARABIA AND IRAQ THOSE RESERVES ACCORDING TO INDUSTRY ESTIMATES MADE BEFORE THE WAR ARE 94 BILLION BARRELS NEARLY 10 OF THE WORLD'S TOTAL IT ISN'T YET KNOWN JUST HOW MUCH THESE RESERVES MAY HAVE BEEN DEPLETED BY THE GUSHING WELLS AND WELL FIRES LEFT BEHIND BY THE DEPARTING IRAQIS SOME KUWAITI OIL OFFICIALS CONFIRM SIGNS OF DAMAGE SUCH AS MORE WATER PRODUCED WITH THE OIL IN SOME AREAS WE ARE SEEING A BIGGER WATER CUT' AND MORE SALT FROM SOME WELLS SAYS AN ENGINEER THE FEW WELLS THAT WEREN'T SET ON FIRE BY THE DEPARTING IRAQIS WERE LEFT GUSHING WIDE OPEN THEY SPEWED UNTOLD MILLIONS OF BARRELS OF OIL ONTO THE DESERT SANDS CREATING HUGE OIL LAKES KUWAIT OIL EXPECTS TO SALVAGE AS MUCH AS 20 MILLION BARRELS FROM THE POOLS SO FAR ABOUT HALF THAT AMOUNT HAS BEEN RECOVERED TREATED AND SOLD TO THOSE REFINERIES THAT CAN USE IT PRELIMINARY EVIDENCE FROM RESERVOIR STUDIES SUGGESTS THAT PERHAPS 13 BILLION BARRELS OF RESERVES WERE LOST THAT IS EQUAL TO ONE GIANT OIL FIELD BUT IT WOULD DEPLETE KUWAIT'S TOTAL RESERVES A 160YEAR SUPPLY AT CURRENT RATES OF PRODUCTION BY ONLY 1 TO 2 IN ALL SOME 700 WELLS ARE PRODUCING AGAIN REHABILITATION OF THE OILGATHERING CENTERS IS WELL ALONG AND REFINERY OPERATIONS ARE APPROACHING PREINVASION CAPACITIES BUT MUCH IS DIFFERENT SINCE THE INVASION MORE GREEN GROWTH CAN BE SPOTTED IN THE DESERT PERHAPS THE RESULT OF FERTILIZING BY THE OILSTAINED SANDS EVERYTHING HAS CHANGED EVEN THE WEATHER WHICH WE LIKE SAYS ABDULRAHIM HASSAN A KUWAIT OIL PRODUCTION SUPERVISOR DURING A RAIN SHOWER IN THIS UNUSUALLY COOL SPRING AT ALAHMADI WHERE KUWAIT OIL IS HEADQUARTERED OFFICIALS SAY SURFACE FACILITIES TO HANDLE THE OIL ARE BEING EXPANDED EVEN FASTER THAN OUTPUT BUT UNTIL THERE ARE FURTHER RESERVOIR STUDIES THE ISSUE OF HOW QUICKLY KUWAIT WILL WANT TO RETURN TO ITS PREINVASION PRODUCING CAPACITY OF THREE MILLION BARRELS A DAY HASN'T BEEN DECIDED THERE ARE HINTS HERE THAT KUWAIT MAY NEVER PRODUCE BEYOND THREE MILLION FOR PERSIAN GULF POLITICAL REASONS WE EXPECT THE RESERVOIR STUDIES TO BE COMPLETED BY 1994 SAYS AHMED ALARBEED KUWAIT OIL'S DEPUTY MANAGING DIRECTOR FOR PLANNING AND FINANCE THEN AT MID1994 WE WILL BE ABLE TO SET THE LONGTERM STRATEGY 9306070011 930607 BAY MEADOWS RESTATES FIRST QUARTER TO LOSS DUE TO SUIT SETTLEMENT SAN MATEO CALIF CALIFORNIA JOCKEY CLUB SAID IT AGREED TO PAY A LAND DEVELOPER BAY MEADOWS PARTNERS AND TWO AFFILIATES 21 MILLION TO SETTLE A LAWSUIT ALLEGING BREACH OF AN AGREEMENT TO DEVELOP 40 ACRES OF THE RACETRACK'S LAND THE PAYMENT WILL CAUSE THE CLUB LISTED ON THE AMERICAN STOCK EXCHANGE AS BAY MEADOWS OPERATING CO TO REPORT A FIRSTQUARTER LOSS OF 12 MILLION OR 21 CENTS A SHARE RESTATED FROM AN ORIGINALLY REPORTED NET INCOME OF 285000 OR FIVE CENTS A SHARE BAY MEADOWS OPERATING CLOSED FRIDAY AT 10875 UP 375 CENTS IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING 9306070010 930607 IRS'S TAX DISPUTE WITH FEDERAL EXPRESS GROWS TO 159 MILLION MEMPHIS TENN THE STAKES IN A BATTLE BETWEEN FEDERAL EXPRESS CORP AND THE INTERNAL REVENUE SERVICE HAVE NEARLY TRIPLED TO 159 MILLION ACCORDING TO RECENT QUARTERLY EARNINGS FILINGS THIS SPRING THE IRS ASKED THE PACKAGEDELIVERY COMPANY TO PAY 105 MILLION IN EXCISE TAX CLAIMING IT WAS UNDERPAID FOR A PERIOD BEGINNING IN 1987 AND ENDING IN 1991 THE FILINGS INDICATE THIS IS ON TOP OF 54 MILLION THE IRS SAYS IT IS OWED FOR A PERIOD BEGINNING IN 1983 AND ENDING IN 1987 THE COMPANY IS CHALLENGING THE CLAIMS THE DISPUTE CENTERS ON FEDERAL EXPRESS'S METHOD OF CALCULATING FEDERAL EXCISE TAX THE COMPANY HAS SAID IT PAYS THE TAX BASED ON THE PERCENTAGE OF ITS COSTS THAT ARE AIRLINERELATED FEDERAL EXPRESS CONSIDERS ITS PACKAGESORTING OPERATIONS TO BE A GROUND OPERATION BUT THE IRS DISAGREES THE COMPANY HAS SAID THE IRS SAID IT CAN'T COMMENT IN 1991 FEDERAL SAID IT HADN'T SET ASIDE A RESERVE FUND TO COVER POSSIBLE PAYMENTS COMPANY OFFICIALS WOULDN'T COMMENT ON WHETHER A RESERVE HAD BEEN CREATED SINCE THEN IF THEY DO OWE MONEY YOU'D SEE THE STOCK GET HIT SAID DAVID GUTHRIE ANALYST WITH MORGAN KEEGAN & CO BUT IT WOULDN'T CHANGE THE FUTURE EARNINGS POTENTIAL FOR THE COMPANY IN THE WORST CASE IF FEDERAL EXPRESS LOSES ITS CHALLENGE THE AMOUNT OWED WOULD LIKELY ELIMINATE A YEAR'S EARNINGS IT'S A CONTINUING CONCERN SAID PAUL R SCHLESINGER ANALYST WITH DONALDSON LUFKIN & JENRETTE SECURITIES CORP ANALYSTS ALSO SAID THEY BELIEVE FEDERAL EXPRESS MIGHT CONSIDER SETTLING THE DISPUTE FOR A LOWER AMOUNT BUT NEITHER THE COMPANY NOR ANALYSTS WOULD ESTIMATE WHEN THEY EXPECT THE ISSUE TO BE RESOLVED 9306070008 930607 BUSINESS BRIEF WALMART STORES INC SALES SEEN RISING 23 IN '93 FROM 38 BILLION EXPANSION WALMART STORES INC PROJECTED AT LEAST A 23 INCREASE IN SALES TO 68 BILLION OR 69 BILLION IN THE CURRENT YEAR THE BULK OF THE GROWTH WILL COME FROM AN AGGRESSIVE 38 BILLION EXPANSION PROGRAM AS THE COMPANY BUILDS AT LEAST 216 STORES AND EXPANDS OR REMOLS 214 OTHERS THIS FISCAL YEAR SAID PAUL R CARTER CHIEF FINANCIAL OFFICER AT THE BENTONVILLE ARK COMPANY'S ANNUAL MEETING THE MEETING REVEALED DISSENSION BETWEEN SENIOR MANAGEMENT AND AT LEAST ONE MEMBER OF THE WALTON FAMILY SPRINGING FROM THE COMPANY'S MOVES TO CUT PAYROLL COSTS OVER THE PAST FEW MONTHS IN RESPONSE TO WEAK SALES WHEN JAMES BUD WALTON VICE PRESIDENT BOARD MEMBER AND BROTHER OF COMPANY FOUNDER SAM WALTON CALLED THAT MOVE WRONG AND SUGGESTED EXECUTIVES TAKE A PAY CUT INSTEAD THE RAFTERS RANG WITH THE ROARS OF APPROVAL FROM SEVERAL THOUSAND EMPLOYEE SHAREHOLDERS PRESENT 9306070006 930607 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE SOUTH KOREAN GOVERNMENT PLANS TO SET UP A 10 MILLION FUND TO EXPAND EFFORTS FOR INDUSTRIAL LINKS WITH US COMPANIES THE TRADE INDUSTRY AND ENERGY MINISTRY TAPPED TWO BUSINESS GROUPS THE KOREA FOREIGN TRADERS ASSOCIATION AND THE FEDERATION OF KOREAN INDUSTRIES TO RAISE CASH FOR THE FUND OVER FIVE YEARS SOUTH KOREA WANTS CLOSER US INDUSTRIAL COOPERATION TO REDUCE ITS HEAVY RELIANCE ON JAPANESE TECHNOLOGY AND PARTS AND TO REVERSE A DROP IN INVESTMENT FROM ABROAD THE FUND WOULD SUPPORT FEASIBILITY STUDIES OF USKOREAN VENTURES IN AEROSPACE MACHINE TOOLS COMPUTERS ENVIRONMENTAL FACILITIES AND MEDICAL AND TELECOMMUNICATIONS EQUIPMENT AS WELL AS COOPERATION BETWEEN SMALL BUSINESSES IT MAY SUPPORT PROJECTS IN KOREA AND OTHER COUNTRIES A TOP KOREAN TRADE OFFICIAL WILL VISIT THE US FOR EIGHT DAYS STARTING SATURDAY TO MEET WITH KOREAN AND US BUSINESS REPRESENTATIVES AND SEEK US GOVERNMENT COOPERATION ON THE PROPOSED TIES BEACHGOERS IN EUROPE GOT GOOD NEWS THE EUROPEAN COMMUNITY SAID 81 OF THE BODIES OF WATER IT MONITORS MEET CLEANLINESS STANDARDS A SHARP IMPROVEMENT FROM 70 DEEMED SATISFACTORY IN 1982 WHEN THE STUDIES BEGAN AMONG THE 12 EC NATIONS GREECE HAD THE CLEANEST OCEAN BEACHES WITH 97 MEETING THE STANDARDS AND BRITAIN THE WORST WITH 79 FOR FRESHWATER BEACHES GREECE AND IRELAND RANKED TOPS WHILE BELGIUM'S LAKES AND RIVERS WERE THE DIRTIEST WITH 40 FAILING MINIMUMS AUSTRALIA'S POPULATION IN 1992 GREW AT THE SLOWEST RATE IN 14 YEARS AS THE LINGERING RECESSION CURBED IMMIGRATION THE POPULATION TOTALED 176 MILLION UP 184700 FOR A 106 GROWTH RATE DOWN FROM 125 IN 1991 GROWTH HAS DECELERATED SHARPLY SINCE THE LATE 1980S WHEN AN IMMIGRATION BOOM PEAKED AND POPULATION EXPANSION HIT A 178 PACE IN 1988 BETWEEN 1986 AND 1991 GROWTH AVERAGED 15 A YEAR ISRAEL IS INVESTING HUNDREDS OF MILLIONS OF DOLLARS IN A VAST ROAD NETWORK TO MAKE ITS SEAPORTS AND AIRPORT A SHIPPING GATEWAY FOR THE OCCUPIED TERRITORIES AND NEIGHBORING ARAB STATES THE PLAN ANTICIPATES MIDEAST PEACE DEVELOPING FROM USBACKED NEGOTIATIONS WITH PALESTINIANS AND OTHER ARABS IT IS BASED ON THE IDEA THAT ISRAEL IN THE NEXT 10 TO 15 YEARS CAN BECOME THE MAIN SHIPPING OUTLET FOR JORDAN SYRIA AND SAUDI ARABIA ONCE AUTONOMY IS ACHIEVED FOR THE WEST BANK AND GAZA STRIP AND A PEACE PROCESS IMPLEMENTED RATIFICATION OF A DATE FOR SOUTH AFRICA'S FIRST RACIALLY UNRESTRICTED ELECTIONS COULD LEAD TO THE LIFTING OF ALL MAJOR ANTIAPARTHEID SANCTIONS EXCEPT ARMS AND OIL EMBARGOS OPENING THE WAY FOR DIPLOMATIC TIES AND FINANCIAL DEALS WOULD GIVE BUSINESS A LIFT THOUGH FOREIGN AID AND INVESTMENT MAY ONLY TRICKLE IN UNTIL UNCERTAINTIES ABOUT POLITICAL AND ECONOMIC CHANGES AND CONTROL OF VIOLENCE ARE RESOLVED NEGOTIATORS LAST WEEK PROPOSED ELECTIONS FOR APRIL 27 1994 THE AFRICAN NATIONAL CONGRESS CONDITIONED ITS SUPPORT FOR LIFTING SANCTIONS ON SETTING ELECTIONS AND INSTALLING AN EXECUTIVE COUNCIL PENDING A DEMOCRATIC GOVERNMENT THE LOUVRE IN PARIS WILL INAUGURATE A NEW WING NOV 18 WHEN THE MUSEUM WILL OBSERVE ITS FOUNDING 200 YEARS AGO THE RICHELIEU WING WHICH UNTIL RECENTLY HOUSED THE FRENCH FINANCE MINISTRY IS BEING CONVERTED INTO A GALLERY THE ADDITION NAMED AFTER THE 17THCENTURY FRENCH CARDINAL AND STATESMAN WILL EFFECTIVELY COMPLETE AN AMBITIOUS EXPANSION PROGRAM BEGUN IN 1989 WITH THE INSTALLATION OF A GLASS PYRAMID FOR A NEW ENTRANCE IN THE MAIN COURTYARD EXHIBITION SPACE WILL HAVE DOUBLED WITH THE RICHELIEU WING AND A SERIES OF NEW UNDERGROUND GALLERIES TO OPEN IN SEPTEMBER LAST DECEMBER THE LOUVRE OPENED 39 NEW DISPLAY ROOMS DESPITE PORTUGAL'S IMPRESSIVE STRIDES TO CATCH UP WITH ITS EUROPEAN COMMUNITY COUNTERPARTS ITS ECONOMY WILL STALL THIS YEAR THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT SAID GROWTH IN GROSS DOMESTIC PRODUCT WHICH ROSE 14 LAST YEAR IS EXPECTED TO SLIP TO 09 THIS YEAR THEN PICK UP TO JUST 17 NEXT YEAR SAID THE OECD AN ECONOMIC FORUM OF INDUSTRIAL NATIONS THE OECD PRAISED PORTUGAL FOR CUTTING GOVERNMENT SPENDING AND DEBT NOT RAISING TAXES REDUCING INFLATION MAKING STRUCTURAL REFORMS SUCH AS PRIVATIZING ENTERPRISES AND ADOPTING EC SINGLEMARKET RULES BUT SLOWING EXPORTS AMID EUROPE'S RECESSION MAKE THE OUTLOOK SLUGGISH PORTUGAL'S REINEDIN DISPOSABLE INCOMES AND GOVERNMENT OUTLAYS WILL DAMP PRIVATE AND PUBLIC CONSUMPTION AND UNEMPLOYMENT MAY RISE TO 57 NEXT YEAR FROM 51 THIS YEAR AND 45 LAST YEAR BUT THESE FACTORS COULD CUT INFLATION TO 6 IN 1994 THE LOWEST RATE IN TWO DECADES FROM 75 THIS YEAR AND 95 IN 1992 AUSTRALIA'S NEWSPAPER UNION SAID 10000 JOURNALISTS AND OTHER WORKERS AT PAPERS IN SIX CITIES STAGED A 24HOUR STRIKE FRIDAY IN A SALARY DISPUTE MANAGERS STEPPED IN TO PRODUCE EDITIONS PARLIAMENT IN SWEDEN A MEMBER OF THE EUROPEAN FREE TRADE ASSOCIATION APPROVED A REVISED TREATY TO CREATE AN 18NATION TRADE NETWORK BETWEEN THE 12COUNTRY EUROPEAN COMMUNITY AND ALL EFTA COUNTRIES EXCEPT SWITZERLAND 9306070005 930607 LETTERS TO THE EDITOR DON'T BLAME RADIOLOGIST YOUR MAY 4 ARTICLE SOME SEEK TO PROFIT AS WHITE HOUSE MULLS CURBS ON HEALTH COSTS QUOTES THE PHYSICIAN PAYMENT REVIEW COMMISSION AS REPORTING A 12 DECLINE IN RADIOLOGY SERVICES AND AN INCREASE IN RADIOLOGY VOLUME OF 13 FOLLOWING SETTING OF MEDICARE FEES THIS IMPLIES OF COURSE THAT RADIOLOGISTS SIMPLY DO MORE EXAMS TO MAKE UP FOR LOWER FEES PER EXAM I CAN THINK OF NO SITUATION IN WHICH THIS IS POSSIBLE RADIOLOGISTS IN ALL SETTINGS DO ONLY THE EXAMS ORDERED BY REFERRING PHYSICIANS AND HAVE LITTLE OR NO CONTROL OVER THE TYPE OR VOLUME OF THESE REQUESTS I SUSPECT THE QUOTED PERCENTAGES COME FROM NONRADIOLOGISTS WHO DO RADIOLOGIC EXAMS IN THEIR OWN OFFICES OR CLINICS A RECENT STUDY IN FLORIDA HAS SHOWN THAT IN THIS SITUATION MORE RADIOLOGIC EXAMS ARE ORDERED AND MORE IS CHARGED FOR THEM THAN WHEN THE PATIENTS ARE REFERRED TO RADIOLOGISTS 9306070003 930607 WHO'S NEWS MATRIX SERVICE CO MATRIX SERVICE CO TULSA OKLA CHARLES G MCCONNELL PRESIDENT WAS NAMED TO THE ADDITIONAL POSITION OF CHIEF EXECUTIVE OFFICER OF THIS PETROLEUM SERVICES CONCERN MR MCCONNELL 48 YEARS OLD WILL SUCCEED DOYL WEST 51 WHO REMAINS CHAIRMAN 9306070002 930607 LEISURE & ARTS BOOKSHELF A SCRIBE'S LIFE IN SOUTHERN MAINE BY DAVID SHRIBMAN IN ALEXANDER BROOK'S WORLD JOURNALISTS DON'T WORRY ABOUT WHETHER DAVID GERGEN IS RESTRICTING ACCESS TO THE PRESIDENT OR HOW MUCH THE PRESS PLANE TO OREGON COSTS OR WHETHER THE TREASURY DEPARTMENT IS PROVIDING A LIVE FEED FROM THE SECRETARY'S MEETING WITH BUSINESS EXECUTIVES AGAINST THE NORTH AMERICAN FREE TRADE AGREEMENT IN HIS WORLD THE JOURNALISTS ARE PRINTERS WHO SOMETIMES SELL ADS AND WORRY IF THE REVENUE THAT COMES IN BY FRIDAY WILL KEEP THE PAPER ALIVE UNTIL MONDAY FOR TWO DECADES MR BROOK WROTE ABOUT LIQUOR LAWS SPECULATED ABOUT WHETHER THE HIGHSCHOOL PRINCIPAL WAS TOO STRICT RAISED QUESTIONS ABOUT WHETHER THE SHERIFF PRACTICED FAVORITISM AND FOUGHT WITH FLINTY BOOKSELLERS WHO WANTED A HARD GUARANTEE THAT THEIR AD WOULD APPEAR IN SECTION ONE PAGE THREE UPPERRIGHTHAND CORNER DAY IN AND DAY OUT MR BROOK DID THAT SORT OF THING AND THEN HE SOLD THE DARN PAPER LOCK STOCK AND INK BARREL AND WROTE A BOOK HE DID THINGS THE HARD WAY AND HE CALLS HIS BOOK JUST THAT THE HARD WAY BRIDGE WORKS 306 PAGES 1995 THERE'S A WHIFF OF SALT WATER IN THIS BOOK THE SETTING BEING THE COLORFUL CORNER OF SOUTHERN MAINE WHERE THE LOBSTERMEN TROLL PAST CAPE PORPOISE AND THE TOURISTS STROLL ON OGUNGUIT'S SLENDER MARGINAL WAY JUST A WHISKER FROM THE SEA THERE'S SOME PERSONAL PATHOS IN THIS BOOK TOO THE AUTHOR MANAGING TO MOVE HIS WIFE TO MAINE DIVORCE HER REMARRY HER DIVORCE HER AGAIN AND THEN MARRY SOMEONE ELSE ALL IN ONE VOLUME MAYBE SETTING SOME KIND OF RECORD AND THERE'S ALSO SOME ROMANCE IN THIS BOOK UNLESS ONLY THOSE OF US WHO ARE JOURNALISTS SEE SOMETHING MAGICAL AND MYSTICAL IN THE LONE AND LONGSUFFERING SMALLTOWN EDITOR WHO IS PART SCRIBBLER PART TOWN CRIER PART HUCKSTER PART ENTREPRENEUR PART DEBTOR PART REVOLUTIONARY AND PART PHILOSOPHER WHICH LEADS US INEVITABLY TO BRIDGE WORKS PUBLISHING WHICH BROUGHT THE HARD WAY INTO PRINT THIS BOOK IS THE FIRST VOLUME TO SLIP OFF THE PRESSES OF A NEW HOUSE RUN BY A MAN WHO ONCE WAS A PUBLISHER OR TO BE PERFECTLY EXACT ABOUT IT THE PUBLISHER HE IS WARREN H PHILLIPS WHO WAS THE CHAIRMAN OF DOW JONES & CO FROM 1978 UNTIL 1991 AND WHO WITH HIS WIFE BARBARA FOUNDED BRIDGE WORKS WITH THE EXPRESS NOTION OF GIVING A VOICE TO PEOPLE LIKE SANDY BROOK FOR THE TRUTH IS THAT MR BROOK PUBLISHED HIS PAPER IN AN ATMOSPHERE THAT IS SIMILAR TO THAT WHICH PREVAILS AT THE WALL STREET JOURNAL ONLY INSOFAR AS THEY ARE BOTH ON THE PLANET EARTH KENNEBUNK'S YORK COUNTY COAST STAR HAS NO EUROPEAN OR ASIAN EDITIONS ITS ADSALES EXECUTIVES DON'T HAND OUT FANCY GOLF SHIRTS AND ITS REPORTERS DON'T HAVE COMPANY CREDIT CARDS AND MAYBE NOT EVEN THEIR OWN NOR DOES IT HAVE A BUDGET FOR BOOK REVIEWERS NO MATTER THERE IS A MESSAGE HERE WHICH IS WHY I THINK MR PHILLIPS WAS DRAWN TO THIS MANUSCRIPT AND ALL OF THE NEW FANCY PEOPLE IN OUR BUSINESS HAD BETTER HEED IT BEFORE IT IS TOO LATE SOME SAMPLES FROM THE WISDOM OF MR BROOK SHOW WHAT I MEAN THAT JUST ABOUT SUMS UP THE THEOLOGY THAT KEEPS US ALL GOING FROM THE PEOPLE SANDY BROOK DISPATCHED TO KITTERY AND WELLS TO WATCH THE TOWN OFFICIALS TO THE FOREIGN CORRESPONDENTS AND POLITICAL REPORTERS THAT MR PHILLIPS KNEW AND NURTURED IN HIS OWN CAREER FAIRNESS DICTATES THAT I TELL YOU THAT THE LATTER GROUP ONCE INCLUDED ME IT HELPS HIS CAUSE THAT MR BROOK CAN WRITE AND MORE IMPORTANT THAT HE HAS THE GIFT OF GOOD EYES HE CAME TO OUR CRAFT AFTER DABBLING NOT WITHOUT SUCCESS BUT ALSO NOT WITH MUCH SATISFACTION AT THE UPPER REACHES OF THE BUSINESS WORLD BUT HE TOOK TO NEWSPAPERING IMMEDIATELY AND WITH GUSTO HE IS AS THEY SAY IN THE SPORTS DEPARTMENT A NATURAL LOOKING AT HIS SHODDY EQUIPMENT AND NOTING HIS FINANCIAL PREDICAMENT AS THE HEAD OF A BUSINESS THAT SEVERAL TIMES NEARLY WENT OUT OF BUSINESS HE MUSES BEAUTY WAS IN THE EYE OF THE BEHOLDEN NOTING THE PASSING OF THE SEASONS IN THE COLONIES OF THE SEA HE SAYS SEPTEMBER CAME ON LIKE A COOL DRINK THEN WITH THE TOURISTS GONE AND THANKS BE FOR THAT THE REAL PEOPLE OF MAINE HE SAYS TAKE UP THE LONG NEEDLE OF COMMITTEE WORK AND GET DOWN TO KNITTING BUT THIS IS NO COUNTRY IDYLL MR BROOK WOOS BUSINESS PARTNERS AND THEN HE BIDS THEM FAREWELL NOT ALWAYS FONDLY HE FINDS HIMSELF IN THE MIDDLE OF A CITIZEN REBELLION IN KENNEBUNK LED BY A SMALLTOWN ROSS PEROT HE CARRIES ON WAR WITH THE HATED RIVAL THE BIDDEFORDSACO JOURNAL AND HE GROWS OLD BECOMING AS HE PUT IT AND WE ALL DREAD THIS A REPORTER WHO HAD WRITTEN HIMSELF OUT OF METAPHOR BUT FOR A LONG TIME MR BROOK BROUGHT TO THE KENNEBUNK STAR A PERSONAL TOUCH AND HIS OWN QUIRKY VIEW OF THE WORLD MR SHRIBMAN IS WASHINGTON BUREAU CHIEF AND ASSISTANT MANAGING EDITOR OF THE BOSTON GLOBE 9306070001 930607 BOARD UPHEAVAL AT DART GROUP IS ANTICIPATED VOTE BY PARENT TWO UNITS APPEARS TO BE LINKED WITH SUCCESSION BATTLE BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL LANDOVER MD DART GROUP CORP SAID THERE MAY BE SIGNIFICANT CHANGES IN THE COMPOSITION OF THE BOARDS OF DIRECTORS AT DART AND TWO COMPANIES IT CONTROLS IN A STATEMENT FRIDAY THE RETAIL AND REAL ESTATE CONCERN SAID THE PROXY STATEMENTS OF DART TRAK AUTO CORP AND CROWN BOOKS CORP WILL CONTAIN THE NEW PROPOSED BOARD SLATES TO BE VOTED ON AT EACH COMPANY'S ANNUAL MEETING IN LATE JUNE OR EARLY JULY A DART SPOKESMAN SAID THE COMPANIES WOULD NOT COMMENT UNTIL THE PROXIES ARE RELEASED IN THE NEXT FEW WEEKS DART OWNS 66 OF TRAK AUTO AND 51 OF CROWN BOOKS THE ANNOUNCEMENT FOLLOWED A WASHINGTON POST ARTICLE DESCRIBING WHAT PEOPLE CLOSE TO THE COMPANY CHARACTERIZED AS A BITTER SUCCESSION BATTLE BETWEEN HERBERT HAFT 72 YEARS OLD DART CHAIRMAN AND CHIEF EXECUTIVE OFFICER AND HIS 40YEAROLD SON ROBERT HAFT DART'S PRESIDENT AND CHIEF OPERATING OFFICER WHO WAS WIDELY EXPECTED TO SUCCEED HIS FATHER THIS YEAR NEITHER RETURNED PHONE CALLS SEEKING COMMENT THE POST QUOTED UNIDENTIFIED SOURCES WHO SAID THAT HERBERT HAFT HAS SUDDENLY REVERSED HIS PLAN TO STEP DOWN BREAKING HIS AGREEMENT WITH ROBERT ACCORDING TO SOURCES THE ELDER HAFT CHANGED HIS MIND AFTER AN APRIL 23 WALL STREET JOURNAL ARTICLE ABOUT DART IN WHICH ROBERT HAFT IN ANTICIPATION OF BECOMING DART'S NEXT CHIEF EXECUTIVE SKETCHED HIS PLANS TO SHORE UP DART'S EARNINGS AND IMAGE AND TO DISTANCE HIS MANAGEMENT STYLE FROM THAT OF HIS FATHER ROBERT HAFT WHO FOUNDED CROWN BOOKS HAS BEEN ACTIVELY INVOLVED IN INSTALLING NEW EXECUTIVES AT DART AND CROWN AND IN EXPANDING THE RETAILER'S DISCOUNT STORE CHAINS WE'RE ABOUT AS DIFFERENT AS YOU CAN BE ROBERT HAFT WAS QUOTED IN THE JOURNAL ARTICLE HE ALSO SAID AT THE TIME THAT DART'S PERFORMANCE OVER THE LAST FOUR YEARS HAS BEEN UNEVEN BECAUSE THE STRATEGIES HAVEN'T BEEN CLEAR IN THE FISCAL YEAR ENDED JAN 31 DART POSTED NET INCOME OF 375 MILLION ON SALES OF 13 BILLION PEOPLE CLOSE TO THE HAFT FAMILY INTERPRETED FRIDAY'S ANNOUNCEMENT OF POSSIBLE NEW BOARD MEMBERS AS A SIGNAL THAT HERBERT HAFT WHO CONTROLS 57 OF DART'S VOTING STOCK INDEED MAY HAVE TURNED ON ROBERT AND ON OTHER MEMBERS OF THE HAFT FAMILY WHO ARE DART DIRECTORS AND WHO ARE UNDERSTOOD TO BE SIDING WITH ROBERT HAFT ONE OF THE SEATS TO BE FILLED IS THAT OF WARREN TYDINGS A LONGTIME DIRECTOR OF DART AND TRAK AND CLOSE ASSOCIATE OF HERBERT HAFT'S WHO DIED RECENTLY ACCORDING TO SOURCES CLOSE TO THE HAFT FAMILY IT IS STILL UNCLEAR WHAT THE OUTCOME WILL BE SOME SEE A POSSIBLE ELEVATED ROLE AT DART FOR ANOTHER SON RONALD HAFT WHO HEADS A SEPARATE REAL ESTATE COMPANY OWNED BY THE HAFTS AND WHO HAS BECOME CLOSELY ALIGNED WITH HIS FATHER IN RECENT WEEKS IT'S A REAL TRAGEDY THAT IT HAS COME TO THIS SAID ONE SOURCE ROBERT WAS TRYING TO CREATE A WHOLE NEW IMAGE FOR THE FAMILY AND FOR DART AND HIS FATHER WOKE UP AND DIDN'T LIKE WHAT HE WAS SEEING 9306070009 930503 COOKBOOK CARE MAINE LIMITS LIABILITY FOR DOCTORS WHO MEET TREATMENT GUIDELINES NOVEL TEST SEEKS TO ELIMINATE MEDICAL PROCEDURES DONE TO CURB LEGAL EXPOSURE MODEL FOR CLINTON TASK FORCE BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL LEWISTON MAINE DOCTORS ARE PRACTICING COOKBOOK MEDICINE HERE THESE DAYS AND THEY'RE COMPLAINING REMARKABLY LITTLE ABOUT IT IN THE PAST TWO YEARS THE STATE HAS ISSUED 22 SETS OF CHECKLISTS WHICH GUIDE DOCTORS ON WHAT TO DO FOR PATIENTS WITH PARTICULAR CONDITIONS A CHECKLIST FOR EMERGENCYROOM DOCTORS INSTRUCTS THEM NOT TO BOTHER GIVING NECK XRAYS AS THEY ALMOST ALWAYS DID IN THE PAST FOR CERTAIN TRAUMA PATIENTS WHO DON'T HAVE NECK PAIN A LIST FOR OBSTETRICIANS SETS OUT EIGHT STEPS THEY SHOULD TAKE BEFORE PERFORMING SOME CAESAREAN DELIVERIES DOCTORS ORDINARILY RESIST SUCH MICROMANAGEMENT OF THEIR CRAFT BUT HERE THEY HAVE GOOD REASON NOT TO IN RETURN FOR FOLLOWING THE CHECKLISTS PHYSICIANS GET SOMETHING AT THE TOP OF THEIR WISH LIST PROTECTION IN MALPRACTICE LAWSUITS AT A TIME WHEN THE CLINTON ADMINISTRATION IS SERIOUSLY CONSIDERING A VARIETY OF MEDICALMALPRACTICE REFORMS AS PART OF ITS HEALTHCARE PACKAGE MAINE'S EXPERIENCE IS INSTRUCTIVE FOR ONE THING THE MAINE PHYSICIANS' COMPLAISANCE ABOUT THE CHECKLISTS MAY BE A SIGN THAT DOCTORS ARE COMING TO GRIPS WITH CHANGES THEY ONCE OPPOSED BUT NOW VIEW AS INEVITABLE AND IT ILLUSTRATES HOW MALPRACTICE RELIEF CAN SERVE AS A POLITICAL CHIP TO ENLIST PHYSICIAN SUPPORT FOR CONTROVERSIAL CHANGES WE HAVE TO FRANKLY LEARN TO LIVE WITH GUIDELINES SAYS ROGER PEZZUTI RADIOLOGY CHIEF AT MAINE MEDICAL CENTER IN PORTLAND THE STATE'S LARGEST HOSPITAL CONNECTING THEM WITH MALPRACTICE REFORM IS A WAY FOR DOCTORS TO GET SOME POSITIVE BENEFIT OUT OF IT UNDER THE MAINE PROGRAM IF IT IS UNCONTESTED THAT A DOCTOR ADHERED TO THE APPROPRIATE CHECKLISTS ANY SUIT AGAINST HIM CAN BE DISMISSED BEFORE TRIAL OTHERWISE THE PATIENT CAN WIN ONLY BY PROVING THAT THE DOCTOR UNREASONABLY DEVIATED FROM THE GUIDELINES DOCTORS HOPE THAT THE PROGRAM WILL REDUCE THE INCENTIVE TO SUE THEM AND LEAD TO LOWER MALPRACTICEINSURANCE RATES THOUGH SO FAR THAT HASN'T HAPPENED MANY PHYSICIANS ATTACK CHECKLISTS AS PAINTBYNUMBERS MEDICINE THAT IGNORES THE IDIOSYNCRASIES OF PATIENTS' CONDITIONS YET POLICY PLANNERS ARE PUSHING THE IDEA HARDER THAN EVER THEY ARGUE THAT CHECKLISTS FORMALLY CALLED PARAMETERS OR PRACTICE GUIDELINES WILL DETER DOCTORS FROM PERFORMING UNNECESSARY PROCEDURES JUST TO PROTECT THEMSELVES AGAINST LAWSUITS SUCH MEASURES CALLED DEFENSIVE MEDICINE ARE VARIOUSLY ESTIMATED TO COST 4 BILLION TO 25 BILLION A YEAR GUIDELINES SUBJECT TO PERIODIC REVISIONS MAY ALSO SERVE TO KEEP DOCTORS BETTER INFORMED ABOUT CHANGING MEDICAL STANDARDS GOVERNMENT AGENCIES AND PHYSICIANS' GROUPS HAVE PUBLISHED HUNDREDS OF RECOMMENDED GUIDELINES IN RECENT YEARS AND PRESIDENT CLINTON WHOSE HEALTHCARE TASK FORCE IS TO ISSUE ITS PROPOSALS THIS MONTH HAS SAID THAT HE SUPPORTS ESTABLISHING MORE PRACTICE GUIDELINES AND USING THEM TO TRY TO CUT COSTS MAINE HAS TAKEN CHECKLISTS AN UNPRECEDENTED STEP FORWARD BY WRITING THEM INTO LAW AND LINKING THEM TO MALPRACTICE RELIEF FASHIONED AS A FIVEYEAR EXPERIMENT THE LAW APPLIES TO FOUR SPECIALTIES OBSTETRICS AND GYNECOLOGY RADIOLOGY EMERGENCY MEDICINE AND ANESTHESIOLOGY PHYSICIANDOMINATED COMMITTEES WROTE THE GUIDELINES WHICH WERE TO TAKE EFFECT ONLY IF MORE THAN HALF THE DOCTORS IN EACH SPECIALTY CHOSE TO PARTICIPATE IN THE EXPERIMENT ULTIMATELY 80 OF THE ELIGIBLE PHYSICIANS SIGNED ON ALREADY THE CHECKLISTS MAY BE HELPING TO BREAK SOME ENTRENCHED AND COSTLY HABITS EMERGENCYROOM OFFICIALS AT MAINE MEDICAL CENTER ESTIMATE THAT ABOUT 50 OF VICTIMS OF FALLS AND CAR ACCIDENTS NOW GET 170 NECK XRAYS COMPARED WITH ABOUT 95 OF SUCH PATIENTS BEFORE THE EXPERIMENT BEGAN ANESTHESIOLOGISTS SAY THEY ARE DOING FEWER BLOOD TESTS AND CHEST XRAYS BEFORE SURGERY AND RADIOLOGISTS CITE THE GUIDELINES AS ONE REASON THEY NO LONGER REQUIRE THAT MANY PATIENTS STAY OVERNIGHT IN THE HOSPITAL AFTER CERTAIN BLOODVESSEL XRAYS JUST AS EXPERIENCED CHEFS ONLY RARELY REFER TO THEIR COOKBOOKS MOST DOCTORS DON'T REGULARLY NEED TO PULL OUT THE GUIDELINES INDEED SOME OF THE CHECKLISTS ARE SIMPLY RESTATEMENTS OF PROCEDURES THAT ARE ALREADY STANDARD PRACTICE FOR MOST DOCTORS PARTICULARLY IN BIG HOSPITALS WITH EXTENSIVE INTERNAL GUIDELINES WE WERE ALREADY FOLLOWING THESE GUIDELINES AND MORE SAYS PHILLIP STUBBLEFIELD CHIEF OF OBSTETRICS AT MAINE MEDICAL CENTER BUT THE GUIDELINES HAVE CHANGED THE CALCULUS OF DOCTORS' DECISIONS ABOUT SOME TREATMENTS WATERVILLE OBSTETRICIAN MARGARET GRIFFIN NOW DOES AN EXTRA TEST BEFORE PERFORMING HYSTERECTOMIES ON WOMEN WITH ABNORMAL LEVELS OF UTERINE BLEEDING THE GUIDELINES SAY TO MAKE SURE THE BLEEDING ISN'T CAUSED BY POLYPS IN THE UTERUS WHICH CAN BE TREATED WITHOUT MAJOR SURGERY PREVIOUSLY DR GRIFFIN DIDN'T DO THAT TEST BECAUSE IT ONLY RARELY SHOWS POLYPS TRIGGERING THE BLEEDING SHE SAYS PORTLAND ANESTHESIOLOGIST KATHERINE POPE SO DISAGREES WITH ONE GUIDELINE A PROVISION CALLING FOR PRESURGICAL ANEMIA TESTS ON BABIES UNDER SIX MONTHS OLD THAT SHE REFUSES TO FOLLOW IT BUT MANY OTHER DOCTORS SAY THEY FULLY COMPLY WITH ALL THE CHECKLIST PROVISIONS IN ORDER TO GET AS MUCH LIABILITY PROTECTION AS POSSIBLE EMERGENCY PHYSICIAN CHRISTOPHER CLARK SAYS HE WON'T DEVIATE AT ALL FROM A CHECKLIST ON TRANSFERRING PATIENTS FROM ONE HOSPITAL'S EMERGENCY ROOM TO ANOTHER HOSPITAL THE CHECKLIST WHICH MIRRORS FEDERAL REGULATIONS ON TRANSFERS SPELLS OUT 11 REQUIREMENTS FOR TRANSFERS SUCH AS ENSURING THAT THE CONDITION OF THE PATIENT TO BE TRANSFERRED HAS STABILIZED AND SENDING THE PATIENT'S RECORDS TO THE OTHER HOSPITAL BESIDE EACH REQUIREMENT IS A SPACE WHERE DOCTORS CAN INDICATE IT HAS BEEN MET THE TRANSFER CHECKLIST HELPS ME TO STAY ORGANIZED SAYS DR CLARK WHO WORKS IN FOUR CENTRAL MAINE EMERGENCY ROOMS THE NURSE WILL PUT THE LIST RIGHT UNDER MY NOSE AND SAY THE PATIENT CAN'T GO UNTIL I SIGN THE CHECKLIST TO INDICATE THAT ALL THE CONDITIONS HAVE BEEN MET DR CLARK ALSO HAS MADE THE GUIDELINE ON WHEN TO GIVE NECK XRAYS A PART OF HIS PERMANENT EQUIPMENT I CARRY IT WITH ME ALL THE TIME IN MY BAG HE SAYS SOME DOCTORS HAVE FOUND UNEXPECTED USES FOR THE CHECKLISTS DR GRIFFIN THE WATERVILLE OBSTETRICIAN SOMETIMES SHOWS THEM TO PATIENTS WHEN SHE WANTS TO INFLUENCE THEIR DECISIONS ABOUT WHETHER TO GET A PARTICULAR TREATMENT SHE USED A GUIDELINE ON HERPES FOR INSTANCE TO CONVINCE A PREGNANT WOMAN WITH A HERPES VIRUS THAT SHE DIDN'T NEED WEEKLY CERVICAL TESTS BECAUSE IT WASN'T CURRENTLY ACTIVE ALTHOUGH THE GUIDELINES SAY THE TESTS AREN'T NECESSARY FOR WOMEN WITH INACTIVE VIRUSES THEY WERE ONCE ROUTINE AND SOME PATIENTS STILL COME IN EXPECTING THEM ALSO DR GRIFFIN HAS ATTACHED COPIES OF CHECKLISTS TO PATIENTS' CHARTS SO SHE CAN MARK THEM WHEN SHE COMPLETES EACH REQUIREMENT IT'S A NICE WAY OF MAKING SURE THAT YOU'VE DONE ALL THE THINGS YOU'RE SUPPOSED TO DO SHE SAYS THE EXPERIMENT WAS THE BRAINCHILD OF A COALITION OF BUSINESSPEOPLE AND INTEREST GROUPS FORMED TO PRESENT LEGISLATORS WITH A PLAN FOR HEALTHCARE REFORM REPRESENTATIVES OF THE STATE MEDICAL ASSOCIATION WHICH LOBBIES FOR DOCTORS URGED THE GROUP TO CONSIDER MALPRACTICE REFORMS BUT OTHERS IN THE COALITION OPPOSED LIMITING PATIENTS' RIGHT TO SUE WITHOUT GREATER ASSURANCES THAT DOCTORS WOULD ADHERE TO HIGH STANDARDS OF CARE THE RESULTING COMPROMISE WAS THE PLAN FOR GUIDELINES TO GAIN THE MEDICAL ASSOCIATION'S SUPPORT COALITION MEMBERS AGREED THAT PLAINTIFFS WOULDN'T BE ABLE TO CITE NONCOMPLIANCE WITH THE GUIDELINES AS EVIDENCE OF NEGLIGENCE ALLAYING DOCTORS' GREAT FEAR THAT THE GUIDELINES WOULD BOOMERANG AGAINST THEM IN COURT AND THE COALITION AGREED DOCTORS WOULDN'T BE FORCED TO PARTICIPATE IT ALSO CALLED FOR LOCAL PHYSICIANS RATHER THAN ACADEMICS OR POLICY MAKERS TO DESIGN THE GUIDELINES IT'S NOT LIKE SOME IVORYTOWER PHYSICIAN AT SOME MEDICAL CENTER IN NEW YORK CITY TELLING US WHAT TO DO SAYS DAVID JOHNSON A LEWISTON EMERGENCY PHYSICIAN THE DOCTORS ALSO HOPED THAT BY SUPPORTING THE CHECKLIST PLAN THEY COULD WIN SWEEPING MALPRACTICE CHANGE SUCH AS CAPS ON JURY AWARDS FOR EMOTIONAL DISTRESS AND A PROVISION REDUCING MALPRACTICE AWARDS BY THE COMPENSATION PLAINTIFFS GET FROM INSURANCE AND OTHER SOURCES WE KNEW THAT LEGISLATURES AREN'T REALLY WILLING TO GIVE MALPRACTICE REFORM CARTE BLANCHE SAYS JOHN MAKIN AN OBSTETRICIAN WHO HELPED WRITE THE GUIDELINES TRIAL LAWYERS MUSTERED THE PLAN'S PRIMARY OPPOSITION IN THE LEGISLATURE CONTENDING THAT IT VIOLATED PLAINTIFFS' RIGHTS BY BARRING THEM FROM USING THE CHECKLISTS AGAINST DOCTORS BUT AFTER WEEKS OF NEGOTIATING THE LEGISLATURE APPROVED THE EXPERIMENT AT 430 AM THE LAST NIGHT OF ITS 1990 SESSION THE LAW INCLUDED MUCH OF WHAT THE PHYSICIANS HAD ASKED FOR INCLUDING THE PROVISION SUBTRACTING INSURANCE PAYMENTS FROM MALPRACTICE AWARDS AND A PROGRAM TO HELP RURAL OBSTETRICIANS PAY THEIR MALPRACTICE PREMIUMS CAPS ON DAMAGES ONE OF THE PROPOSALS ALSO UNDER CONSIDERATION BY THE CLINTON STAFFERS WEREN'T APPROVED BUT OPPOSITION DIDN'T DIE WITH THE LEGISLATURE'S VOTE LAWYERS WHO TYPICALLY DEFEND DOCTORS AND WHO HADN'T OBJECTED TO THE BILL IN THE LEGISLATURE UNEXPECTEDLY BEGAN WARNING DOCTORS THAT THE CHECKLISTS WOULD DO THEM MORE HARM THAN GOOD IN COURT DESPITE THE LANGUAGE OF THE BILL THEY CONTENDED CREATIVE PLAINTIFFS' LAWYERS WOULD FIND A WAY TO INTRODUCE THE LISTS AGAINST DOCTORS AND THEY SAID CHECKLISTS WOULD MAKE IT HARD TO EXPLAIN TO JURIES WHY DOCTORS' DECISIONS SOMETIMES DEVIATE FROM THE STATED GUIDELINES THE LAWYERS MADE THEIR CASE IN A MASS MAILING THAT THE STATE'S LARGEST MALPRACTICE INSURER SENT OUT AS DOCTORS WERE DECIDING WHETHER TO JOIN THE EXPERIMENT THEIR TIMING INFURIATED PLAN SUPPORTERS A CLASSIC EXAMPLE OF THE FOX GUARDING THE HENHOUSE DR STUBBLEFIELD CALLS IT IF THERE ARE FEWER MALPRACTICE CASES WE DON'T NEED SO MANY LAWYERS THE SUPPORTERS FOUGHT BACK LOBBYING COLLEAGUES AND SOLICITING CONTRARY OPINIONS FROM DEFENSE LAWYERS WHO FAVORED THE EXPERIMENT ON THE DAY BEFORE THE SIGNUP DEADLINE PAMELA BENSEN A PHYSICIAN WHO HELPED WRITE THE EMERGENCY MEDICINE GUIDELINES SPENT 10 HOURS ON THE PHONE PITCHING THE PLAN TO DOCTORS WHO WERE ON THE FENCE SUCH COLLEGIAL PRESSURE WORKED ABOUT 90 OF RADIOLOGISTS 83 OF OBSTETRICIANS 67 OF ANESTHESIOLOGISTS AND 76 OF EMERGENCY DOCTORS SIGNED UP OTHER STATES ARE FOLLOWING MAINE'S LEAD LEGISLATURES IN VERMONT MINNESOTA AND FLORIDA HAVE CALLED FOR THE DEVELOPMENT OF GUIDELINES AS PART OF THEIR HEALTHCARE REFORM PLANS SIMILAR LEGISLATION IS PENDING IN PENNSYLVANIA US SEN WILLIAM COHEN OF MAINE HAS INTRODUCED A BILL IN CONGRESS TO SET UP A FEDERAL CHECKLIST PROGRAM AND HEALTH REFORMERS IN ALMOST EVERY STATE HAVE ASKED MAINE OFFICIALS TO SHARE THEIR FINDINGS AS THE REST OF THE WORLD HAS WOKEN UP TO THE USES OF PARAMETERS SAYS EDWARD DAVID CHAIRMAN OF MAINE'S MEDICAL REGULATORY AGENCY LO AND BEHOLD HERE'S THIS STATE THAT HAS THIS PROGRAM IN PLACE THOSE WHO PUT IT IN PLACE WARN THOUGH THAT IT MAY NOT BE REPRODUCED EASILY ELSEWHERE THE PLAN'S SUCCESS MAINE OFFICIALS SAY WAS FOSTERED IN PART BY SOME FACTORS PECULIAR TO THEIR STATE FOR ONE ITS POPULATION OF 12 MILLION INCLUDES FEWER THAN 170 DOCTORS IN EACH OF THE FOUR SPECIALTIES YOU CAN PRACTICALLY GET THOSE PEOPLE IN A ROOM TOGETHER TO FORGE A CONSENSUS SAYS GORDON SMITH A MEDICAL ASSOCIATION LOBBYIST WHO HELPED WRITE THE CHECKLIST LAW ODDLY MAINE'S HARSH WINTER ALSO AIDED THE PROGRAM A BLIZZARD KEPT WOULDBE OPPONENTS AWAY FROM A PUBLIC HEARING ON WHETHER THE COMMITTEES' DRAFTS OF THE CHECKLISTS SHOULD BE ADOPTED AND MAINE DOCTORS SAY THE IDEA OF TAKING PART IN A PATHBREAKING EXPERIMENT EVEN IF IT FLOPPED APPEALED TO THEIR SENSE OF ADVENTURE THE STAKES AREN'T VERY HIGH IN MAINE SAYS DONALD MCDOWELL PRESIDENT OF MAINE MEDICAL CENTER IT AFFECTS RELATIVELY FEW PEOPLE IF WE SCREW UP THE EXPERIMENT'S BACKERS CONCEDE THAT IT COULD GO AWRY IN SEVERAL WAYS FIRST STATE OFFICIALS DOUBT THAT MANY TEST CASES WILL EMERGE THAT DIRECTLY INVOLVE TREATMENTS IN THE CHECKLISTS NO SUCH CASE HAS YET BEEN FILED RAISING CONCERNS ABOUT WHETHER THE STATE WILL BE ABLE TO GAUGE THE PLAN'S LEGAL MERITS UNTIL INSURERS CAN FIND OUT WHETHER THE LAW TRULY PROTECTS DOCTORS FROM MALPRACTICE VERDICTS RATES AREN'T EXPECTED TO BUDGE PATIENTS' COMPLAINTS COULD ALSO DERAIL THE PLAN AS WITH ANY REFORM AIMED AT REINING IN UNNECESSARY CARE SOME PATIENTS WORRY THAT THEIR TREATMENT WILL BE COMPROMISED JEANINE KIVUS A MOTHER OF FIVE SONS IN LEWISTON SAYS ONE SON WASN'T GIVEN A NECK XRAY WHEN HE WAS TAKEN TO AN EMERGENCY ROOM AFTER A MOUNTAINBIKE ACCIDENT SHORTLY AFTER THE EXPERIMENT BEGAN FOUR DAYS LATER HE NEARLY COLLAPSED MS KIVUS SAYS PROMPTING AN XRAY THAT SHOWED HE HAD BROKEN HIS NECK IN THE ACCIDENT IF THERE IS ANY QUESTION OF A POSSIBLE BACK OR NECK INJURY I THINK IT SHOULD BE EXPLORED SHE SAYS I DON'T WANT ONE OF MY SONS TO BE ONE OF THE ONES THAT SLIPS THROUGH THE CRACKS IN ADDITION THE PROGRAM MAY NOT SUCCEED IN CUTTING MUCH FAT FROM THE STATE'S HEALTH TAB THE NUMBER OF CAESAREAN SECTIONS PERFORMED IN MAINE CONTINUES TO INCREASE SLIGHTLY FOR EXAMPLE LEAVING SOME DOCTORS SKEPTICAL ABOUT WHETHER THE EXPERIMENT WILL LOWER OBSTETRIC COSTS CHECKLISTS THAT REQUIRE EXTRA TREATMENTS SUCH AS THE POLYPS TEST FOR HYSTERECTOMY CANDIDATES WILL ADD SOME NEW COSTS TO COMPLY WITH CHECKLIST REQUIREMENTS SOME DOCTORS ALSO HAVE HAD TO BUY ADDITIONAL EQUIPMENT FOR ADMINISTERING ANESTHESIA AND MONITORING FETUSES BUT THE PROGRAM IS AFTER ALL ONLY AN EXPERIMENT DESPITE PITFALLS IT IS A CREATIVE NEW IDEA THAT DESERVES EVALUATION ARGUES MARC ROBERTS A HARVARD PROFESSOR OF HEALTH POLICY EVEN SOME NATIONAL PHYSICIAN GROUPS WARY OF STATEISSUED CHECKLISTS HAVE SAID THAT THE IDEA DESERVES TO BE BETTER EVALUATED A FEW OF THEM INCLUDING THE AMERICAN MEDICAL ASSOCIATION ENCOURAGED MAINE DOCTORS TO PARTICIPATE IN THE EXPERIMENT AND WHATEVER THE PROGRAM'S SUCCESS IN REDUCING COSTS IT IS ALREADY HELPING MOLLIFY DOCTORS WHO UNTIL NOW HAVE FELT SQUEEZED BY PRESSURES TO CUT BACK ON TREATMENTS WITHOUT MORE PROTECTION FROM LAWSUITS I FEEL BETTER THAT THE PARAMETERS ARE THERE SAYS DR CLARK THE EMERGENCY PHYSICIAN WHEN I DON'T DO AN XRAY I FEEL SAFER SEE RELATED LETTER LETTERS TO THE EDITOR TREATMENT GUIDELINES REDUCE MEDICAL COSTS WSJ JUNE 7 1993 9305030011 YY93 MM06 9306070037 930427 ECONOMY VOLUNTARY PACTS ON HEALTH COSTS ARE CONSIDERED WHITE HOUSE DOESN'T WANT TO SET FEES BUT SEEKS POWERS FOR COMPLIANCE BY RICK WARTZMAN AND HILARY STOUT STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS THINKING INCREASINGLY ABOUT ENTERING INTO COSTCONTROL AGREEMENTS WITH THE HEALTH INDUSTRY INSTEAD OF DICTATING HOW MUCH DOCTORS HOSPITALS AND DRUG COMPANIES CAN CHARGE BUT WHILE ADMINISTRATION OFFICIALS HAVE BEEN CALLING SUCH ARRANGEMENTS VOLUNTARY THEY ARE LIKELY TO GO FORWARD WITH THE PLAN ONLY IF THE PRESIDENT COULD WIN STATUTORY AUTHORITY TO FORCE THE INDUSTRY TO LIVE UP TO ITS WORD FOR EXAMPLE THEY MAY INSIST THAT IF DOCTORS FAIL TO KEEP PRICE INCREASES BELOW AN AGREEDUPON LEVEL THE GOVERNMENT COULD IMPOSE A SURTAX OR OTHER SANCTIONS TO RECLAIM THE EXCESS REVENUE WITH SUCH REQUIREMENTS THE VOLUNTARY AGREEMENTS MAY NOT BE ALL THAT DISTINGUISHABLE FROM GOVERNMENTIMPOSED CONTROLS VOLUNTARY' HAS TO MEAN MORE THAN ON MY HONOR' SAID ONE OFFICIAL INVOLVED IN DRAFTING THE CLINTON HEALTHREFORM PROPOSAL INDEED SEVERAL OTHER OFFICIALS HAVE DESCRIBED THE CONCEPT AS VOLUNTARY WITH TEETH NEVERTHELESS NEGOTIATED AGREEMENTS COULD HAVE ADVANTAGES FOR BOTH SIDES FOR MONTHS ADMINISTRATION OFFICIALS HAVE BEEN STRUGGLING TO COME UP WITH A WAY TO STEM THE RISE IN MEDICAL COSTS IN THE SHORT TERM UNTIL A NEW HEALTH SYSTEM CAN BE PUT IN PLACE BUT EVERY TIME THEY DISCUSS TEMPORARY GOVERNMENT PRICE REGULATIONS THERE IS AN OUTCRY FROM BOTH PARTIES ON CAPITOL HILL THE ADMINISTRATION MIGHT HAVE A BETTER CHANCE OF ARGUING THAT VOLUNTARY COST CONTROLS WOULDN'T BE AS DISRUPTIVE TO THE ECONOMY AS RATES SET SOLELY BY THE GOVERNMENT ENTERING INTO VOLUNTARY AGREEMENTS ALSO WOULD BE A WAY TO INDUCE THE INDUSTRY TO BEGIN HOLDING DOWN PRICES RIGHT AWAY EVEN BEFORE LEGISLATIVE ACTION AND A PARTNERSHIP WITH HEALTHCARE PROVIDERS WOULD ALLOW THE ADMINISTRATION TO TAKE ADVANTAGE OF INDUSTRY EXPERTISE IN SETTING PRICES THEREBY HELPING TO MINIMIZE THE MARKETPLACE DISTORTIONS THAT ANY PRICECONTROL REGIME WOULD BRING FOR THE INDUSTRY VOLUNTARY CONTROLS COULD PROVIDE AN OPPORTUNITY TO RACK UP SOME PUBLICRELATIONS POINTS HAVE AT LEAST SOME INFLUENCE IN THE PROCESS AND POSSIBLY HEAD OFF MORE ONEROUS GOVERNMENT REGULATION ADMINISTRATION OFFICIALS STRESS THAT PRESIDENT CLINTON HASN'T DECIDED WHAT COSTCONTAINMENT MEASURES TO PROPOSE HE STILL IS REVIEWING A RANGE OF OPTIONS INCLUDING SETTING RATES THROUGHOUT THE HEALTH INDUSTRY USING THE SAME METHODS EMPLOYED IN THE MEDICARE PROGRAM ONE GOOD POSSIBILITY FOR QUICK SAVINGS WOULD BE TO PROPOSE MAKING FURTHER CUTS IN OUTLAYS FOR FEDERAL HEALTH PROGRAMS SUCH AS MEDICARE AND MEDICAID THE IDEA OF VOLUNTARY CONTROLS WAS DISCUSSED BY TOP CLINTON ADMINISTRATION HEALTH OFFICIALS AT MEETINGS LATE LAST WEEK AND OVER THE WEEKEND THE ADMINISTRATION HAS LONG BROACHED THE IDEA WITH SOME INDUSTRY GROUPS THOUGH NO FORMAL NEGOTIATIONS HAVE TAKEN PLACE SO FAR SOME IN THE INDUSTRY HAVE SEIZED ON THE IDEA AS A WAY TO AVERT HARSHER GOVERNMENT CONTROLS THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION SAYS 13 OF ITS MEMBERS ALREADY HAVE PLEDGED TO HOLD PRICE INCREASES TO THE GENERAL RATE OF INFLATION MERCK & CO HAS EVEN WRITTEN UP A MODEL THREEYEAR LEGALLY BINDING CONTRACT FOR KEEPING DOWN DRUG PRICES THE PACT WOULD BE SIGNED BY PHARMACEUTICAL COMPANIES AND THE DEPARTMENT OF HEALTH AND HUMAN SERVICES JOHNSON & JOHNSON SAID EARLIER THIS MONTH THAT IT ALSO IS DISCUSSING ITS OWN PLAN WITH THE ADMINISTRATION RICK WADE A SPOKESMAN FOR THE AMERICAN HOSPITAL ASSOCIATION SAID HIS GROUP WOULD CONSIDER PARTICIPATING IN A VOLUNTARY CONTROL SYSTEM ESPECIALLY IF THE GOVERNMENT WERE TO ENFORCE THE AGREEMENTS WITHOUT SUCH A HAMMER THE INDUSTRY MIGHT FAIL TO HOLD PRICES DOWN AND THEN THERE WOULD BE A REAL BACKLASH AT US MR WADE SAID ADDING WE DON'T WANT TO APPEAR TO HAVE FAILED IN THE EYES OF THE AMERICAN PEOPLE HE ALSO SAID THAT THE GREATER THE CHANCE THE CONTROLS HAVE AT REALLY WORKING THE QUICKER HEALTH REFORM IS LIKELY TO BE PHASED IN BUT NOT EVERY PART OF THE HEALTHCARE COMMUNITY IS ENAMORED OF THE PROSPECT OF A VOLUNTARYWITHTEETH SETUP WE'D REALLY LIKE TO BE GIVEN A CHANCE TO DO IT ON OUR OWN SAID JAMES TODD EXECUTIVE VICE PRESIDENT OF THE AMERICAN MEDICAL ASSOCIATION HE HAS DISCUSSED THE ISSUE IN SEVERAL MEETINGS WITH IRA MAGAZINER THE WHITE HOUSE ADVISER OVERSEEING THE HEALTH REFORM EFFORT FOR ITS PART THE HEALTH INSURANCE ASSOCIATION OF AMERICA HASN'T EVEN DISCUSSED VOLUNTARY AGREEMENTS WITH THE ADMINISTRATION BUT OFFICIALS OF THE GROUP SAY THEY WOULD PROBABLY OPPOSE COST CONTROLS OF ANY SORT WITHOUT TEETH CLINTON ADVISERS SAY AGREEMENTS WITH INDUSTRY PROBABLY COULDN'T BE COUNTED AS GENERATING ANY SAVINGS WHEN THE GOVERNMENT MAKES ITS OFFICIAL ESTIMATES OF FEDERAL HEALTH EXPENDITURES AS PART OF THE BUDGET PROCESS BEING ABLE TO SCORE SAVINGS DURING BUDGET DELIBERATIONS IS CRITICAL TO THE ADMINISTRATION'S BEING ABLE TO SHOW THAT ITS ENTIRE HEALTH PACKAGE IS AFFORDABLE ONE CLINTON ADMINISTRATION OFFICIAL EXPRESSED SOME FEAR THAT HEALTHCARE PROVIDERS COULD TRUMPET THEIR VOLUNTARY COMPLIANCE AND THEN LOBBY AGAINST GIVING THE PRESIDENT STANDBY AUTHORITY TO ENFORCE THE AGREEMENTS IN THE LATE 1970S HOSPITALS STARTED A VOLUNTEER CAMPAIGN TO CURB THEIR OWN PRICE INCREASES HELPING DEFEAT A PLAN BY THENPRESIDENT CARTER TO LIMIT HOSPITAL PRICES ONCE THE CARTER PLAN WAS DEAD PRICES SOARED CLINTON POLITICAL ADVISERS ALSO HAVE EXPRESSED CONCERN THAT SEEKING VOLUNTARY AGREEMENTS COULD BACKFIRE IF THE PUBLIC PERCEIVES THE ADMINISTRATION AS COZYING UP TO AN INDUSTRY THAT IT HAS REPEATEDLY PAINTED AS GREEDY SEPARATELY OFFICIALS SAID PRESIDENT CLINTON MAY NOT UNVEIL THE HEALTH OVERHAUL PROPOSAL UNTIL LATE MAY INSTEAD OF THE MIDDLE OF THE MONTH AS HAD BEEN PLANNED IN ANOTHER DEVELOPMENT THE ADMINISTRATION SAID IT HAS BROUGHT IN A GROUP OF 47 DOCTORS NURSES AND OTHER HEALTH PRACTITIONERS TO CRITIQUE THE WORK OF THE WHITE HOUSE HEALTHCARE TASK FORCE THE GROUP WHICH ISN'T BEING PAID WILL EVALUATE HOW MEASURES THE ADMINISTRATION IS CONSIDERING MAY AFFECT THE DELIVERY OF MEDICAL CARE SEE RELATED LETTER LETTERS TO THE EDITOR HOW TO SAVE BILLIONS IN DRUG COSTS WSJ JUNE 7 1993 9304270038 YY93 MM06 9306070029 930420 MARKETSCAN MAKERS OF REMEDIES BREED A CASH COW AS THEY PUBLICIZE LACTOSE INTOLERANCE BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL MORE PEOPLE ARE DISPOSED TO WORRY THESE DAYS ABOUT LACTOSE INTOLERANCE EVEN IF IT HAS NEVER LEFT THEM INDISPOSED THAT'S BECAUSE TWO MAJOR COMPANIES HAVE PLUNGED IN WITH REMEDIES AND THEIR HIGHPROFILE ADVERTISING CAMPAIGNS HAVE CONVINCED THOUSANDS OF PEOPLE THAT DAIRY PRODUCTS MAY CAUSE THEM DISCOMFORT MANY SCIENTISTS AND PHYSICIANS HOWEVER ARGUE THAT THE ADS AND PROMOTIONAL MATERIALS EXAGGERATE THE AILMENT'S SEVERITY AND PREVALENCE LACTOSEINTOLERANCE PRODUCTS PILLS MILK AND DROPS CONTAINING LACTASE AN ENZYME THAT MAKES DAIRY PRODUCTS MORE DIGESTIBLE WERE VIRTUALLY UNKNOWN THREE YEARS AGO BUT SALES IN THIS MARKET GREW 27 LAST YEAR TO 1174 MILLION ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE JOHNSON & JOHNSON IS BY FAR THE MARKET LEADER SINCE ENTERING THE FIELD IN EARLY 1991 THE COMPANY HAS POURED MILLIONS INTO SLICK PACKAGING AND ADVERTISING AND TODAY ITS LACTAID LINE IS THE FASTESTGROWING BRAND SOLD BY ITS MCNEIL CONSUMER PRODUCTS CO UNIT DAIRY EASE MADE BY EASTMAN KODAK CO'S STERLING WINTHROP INC UNIT IS LACTAID'S BIGGEST COMPETITOR THE LACTOSEINTOLERANCE BOOM IS LIKELY TO SPREAD BEYOND PILLS AND ORDINARY MILK JOHNSON & JOHNSON IS TESTING A LACTAID ICE CREAM AND DEVELOPING A LACTAID COTTAGE CHEESE ACCORDING TO AN INDIVIDUAL CLOSE TO THE COMPANY THE CRAZE HAS EVEN GONE BEYOND PEOPLE NOW CATS TOO CAN IMBIBE LACTOSEREDUCED MILK PRODUCTS FROM GRAND METROPOLITAN PLC'S ALPO AND MARS INC'S KAL KAN BRANDS THE ADS HAVE HELPED LACTOSE INTOLERANCE GAIN SEEMING AILMENTOFTHEMONTH STATUS IN THE MEDIA WHERE ESTIMATES OF THE NUMBER OF SUFFERERS HAVE SOARED AS HIGH AS 80 MILLION OR NEARLY ONETHIRD OF THE US POPULATION IN A RECENT LIST OF TRENDS ROLLING STONE MAGAZINE DUBBED IT THE HOT DISORDER OF THE '90S BUT MANY SCIENTISTS FIND THE HOOPLA HARD TO SWALLOW THEY SAY THE MARKETING BLITZES FOR LACTAID AND DAIRY EASE INCLUDING A NEW SELFDIAGNOSTIC TEST FROM JOHNSON & JOHNSON HAVE ALARMED PEOPLE WHO HAVE LITTLE TO WORRY ABOUT MOST PEOPLE WHO ARE LACTOSE INTOLERANT PROBABLY DON'T NEED TREATMENT THE SCIENTISTS SUGGEST THESE ADS ARE OVERREACHING THEIR AUDIENCE SAYS MICHAEL LEVITT A PROFESSOR OF MEDICINE AT THE UNIVERSITY OF MINNESOTA WHO HAS STUDIED LACTOSE INTOLERANCE FOR MORE THAN TWO DECADES THEY'RE OVERDOING THE SEVERITY OF THE PROBLEM SOME PHYSICIANS SAY THEIR COLLEAGUES ARE FEEDING THE FRENZY BY INVOKING LACTOSE INTOLERANCE IN THE CASE OF STOMACH AILMENTS THAT DEFY EASY EXPLANATION THERE'S A LOT OF PEOPLE WHO EXPERIENCE CHRONIC GASTROINTESTINAL COMPLAINTS FOR WHICH NO CAUSE CAN BE FOUND SAYS DOUGLAS MCGILL PROFESSOR OF MEDICINE AT THE MAYO MEDICAL SCHOOL IN ROCHESTER MINN IN AN EFFORT TO MAKE THEM FEEL BETTER PHYSICIANS TURN TO THE IDEA OF LACTOSE INTOLERANCE DR MCGILL AND MANY OTHER MEDICAL RESEARCHERS SAY THE VAST MAJORITY OF PEOPLE WITH LACTOSE INTOLERANCE DON'T NEED LACTAID OR DAIRY EASE MOST CAN TAKE A FAIR AMOUNT OF MILK WITHOUT CAUSING SYMPTOMS SAYS DR MCGILL BUT JOANNE LEEDY A NURSE WHO WORKS FOR AN INTERNIST IN RENO NEV SAYS HER OFFICE RECOMMENDS A LACTOSEFREE DIET TO THE HUNDREDS OF PATIENTS A YEAR WHO COMPLAIN OF CHRONIC STOMACH PROBLEMS WE DON'T SUBMIT MANY PATIENTS TO A LACTOSEINTOLERANCE TEST BECAUSE OF THE EXPENSE AND THE DISCOMFORT SHE SAYS NOTING THAT A MAJORITY OF PATIENTS FEEL BETTER ON THE DIET IN MOST ETHNIC GROUPS OTHER THAN NORTHERN EUROPEANS MOST PEOPLE BEYOND A VERY YOUNG AGE LACK THE ENZYME TO DIGEST LACTOSE OR MILK SUGAR AND CAN SUFFER MILD GAS DIARRHEA OR BLOATING A FEW HOURS AFTER CONSUMING DAIRY FOODS BUT THE CONDITION CAN BE TRICKY TO DIAGNOSE INDIVIDUAL SENSITIVITY TO LACTOSE VARIES WIDELY AND SYMPTOMS CAN MIMIC THOSE OF INDIGESTION OR OTHER GASTRIC UPSETS JOHNSON & JOHNSON'S AND STERLING'S ADS HOWEVER STRONGLY IMPLY THAT LACTOSE INTOLERANCE IS REACHING EPIDEMIC PROPORTIONS OVER 50 MILLION PEOPLE EXPERIENCE STOMACH PROBLEMS FROM EATING ICE CREAM SAYS A LACTAID AD SHOWING THE PRODUCT IN A DAINTY ICE CREAM DISH A TELEVISION COMMERCIAL FOR STERLING'S DAIRY EASE ALSO ALLUDES TO 50 MILLION SUFFERERS AND HAS AN ACTRESS CONFIDING THAT SHE COULDN'T DRINK A DROP OF MILK WITHOUT THE PRODUCT BUT DR LEVITT OF THE UNIVERSITY OF MINNESOTA AND OTHER PHYSICIANS SAY THE 50 MILLION ESTIMATE IS EXTRAPOLATED FROM TRADITIONAL LACTOSEINTOLERANCE TESTS IN WHICH THE SUBJECT CHUGS PURE LACTOSE THE EQUIVALENT OF A QUART OF MILK ON AN EMPTY STOMACH THAT'S ATYPICAL BEHAVIOR EVEN FOR MILK LOVERS THEY SAY EVEN SOME INDUSTRY EXECUTIVES QUESTION THE NUMBERS FIFTY MILLION IS A LITTLE HIGH CONCEDES LACTAID'S DEVELOPER ALAN KLIGERMAN WHO IN EARLY 1991 SOLD THE PRODUCT'S RIGHTS TO JOHNSON & JOHNSON AND REMAINS A CONSULTANT TO THE COMPANY ON THE BRAND WE USED TO SAY 30 MILLION HE SAYS AND THAT WAS THE UPPER LIMIT MR KLIGERMAN FIGURES THE MARKET EVENTUALLY WILL PEAK AT SEVEN MILLION STEADY BUYERS BECAUSE THE ENZYME LACTASE IS CONSIDERED A FOOD ADDITIVE ITS ADVERTISING ISN'T SUBJECT TO THE SAME REGULATORY SCRUTINY AS PHARMACEUTICALS THE FEDERAL TRADE COMMISSION WHICH MONITORS ADVERTISING WON'T SAY WHETHER IT IS LOOKING INTO LACTOSEINTOLERANCE CLAIMS COMPANY OFFICIALS DENY THE ADS ARE MISLEADING ALL THIS AD SAYS IS THAT THERE ARE PEOPLE WHO MIGHT HAVE THIS PROBLEM AND DON'T KNOW IT SAYS A JOHNSON & JOHNSON SPOKESMAN CALLING THE CAMPAIGN A VERY REASONABLE EFFORT TO REACH THEM A STERLING SPOKESMAN ADDS IT'S ACCURATE TO SAY THAT NOT ALL 50 MILLION AMERICANS ARE DOUBLED OVER IN PAIN BUT I THINK THEY DO SUFFER TO A CERTAIN EXTENT A LOT OF THE TIME PEOPLE ARE SO USED TO SUFFERING THEY AREN'T AWARE THEY HAVE LACTOSE INTOLERANCE JOHNSON & JOHNSON'S LATEST MARKETING GAMBIT CALLED THE LACTAID CHALLENGE OFFERS CONSUMERS A FREE TEST KIT FOR HOME DIAGNOSIS OF LACTOSE INTOLERANCE SO FAR THE PROGRAM HAS BEEN WILDLY SUCCESSFUL THE COMPANY LOGGED 300000 REQUESTS ON ITS TOLLFREE LINE IN MARCH UP FROM 160000 CALLS IN ALL OF 1992 JOHNSON & JOHNSON WON'T SAY HOW MANY OF THESE INQUIRIES RESULTED IN NEW SALES IN THE TEST THE COMPANY SUGGESTS THAT USERS MONITOR THEIR STOMACHS AFTER EATING A NORMAL BREAKFAST WITH A 12OUNCE GLASS OF MILK FOR THE NEXT MORNING IT SUGGESTS EATING THE SAME MEAL WITH THREE LACTAID TABLETS ENCLOSED WITH THE TEST IF YOU ARE LACTOSE INTOLERANT YOU'LL PROBABLY NOTICE LESS OR EVEN NONE OF THE DISCOMFORTS YOU EXPERIENCED ON DAY 1 IT SAYS IF THE DISCOMFORTS CONTINUE YOU MAY NEED TO INCREASE THE AMOUNT OF LACTAID YOU TAKE CRITICS DISMISS THE SELFTEST AS BAD SCIENCE AND A BLATANT MARKETING GIMMICK INDIVIDUALS WHO AREN'T LACTOSE INTOLERANT WILL CONCLUDE ON THE DAY THEY TOOK THE PILLS THAT THEY FEEL BETTER FOR NO OTHER REASON THAN THE PLACEBO EFFECT SAYS JAY PERMAN A PROFESSOR OF PEDIATRICS AT JOHNS HOPKINS UNIVERSITY THEY'LL GO AND BUY THIS PRODUCT FOREVER SAYS A JOHNSON & JOHNSON SPOKESMAN WE THINK IT'S A REASONABLE WAY FOR PEOPLE TO FIND OUT WHETHER THEY HAVE THIS PROBLEM JOHNSON & JOHNSON'S AGGRESSIVE MARKETING TACTICS ARE ROOTED IN ITS FIERCE BATTLE WITH STERLING STERLING HAD ALSO APPROACHED MR KLIGERMAN ABOUT PURCHASING THE RIGHTS TO LACTAID WHICH HAD BEEN ON THE MARKET THROUGH THE '80S SOLD MOSTLY IN DRUGSTORES AND HEALTHFOOD STORES AFTER BEING TURNED DOWN STERLING INTRODUCED DAIRY EASE TABLETS IN 1990 WITH LACTAID'S SUPERMARKET DISTRIBUTION SPOTTY STERLING SAW AN OPENING IT STARTED AN AD CAMPAIGN ESTIMATED TO HAVE COST 103 MILLION IN 1991 ACCORDING TO LEADING NATIONAL ADVERTISERS WHICH TRACKS AD SPENDING JOHNSON & JOHNSON CAUGHT BY SURPRISE SPENT ONLY 42 MILLION IN ADVERTISING THAT YEAR THE STRATEGY WORKED FOR A TIME ACCORDING TO INFORMATION RESOURCES' INFOSCAN SERVICE DAIRY EASE TABLETS HAD 1991 SALES OF 117 MILLION DESPITE THEIR LATER START VS 147 MILLION FOR LACTAID'S PILLS JOHNSON & JOHNSON IMMEDIATELY RETALIATED BY INCREASING SUPERMARKET DISTRIBUTION AND AD SPENDING ITS DRIVE AND DEEP POCKETS INCREASED LACTAID'S LEAD IN THE 52 WEEKS ENDED FEB 14 SALES OF LACTAID TABLETS JUMPED 41 TO 226 MILLION PUTTING IT 20 PERCENTAGE POINTS AHEAD OF ITS RIVAL IN MARKET SHARE DAIRY EASE MILK INTRODUCED LAST YEAR STILL LAGS FAR BEHIND LACTAID MILK WHICH CONTROLS 819 OF THE MARKET STERLING'S AD SPENDING FOR DAIRY EASE PRODUCTS PLUNGED IN 1992 TO 33 MILLION JUST AS JOHNSON & JOHNSON'S SPENDING ON LACTAID MORE THAN DOUBLED TO 92 MILLION SOME INDUSTRY EXECUTIVES SEE THAT AS A SIGN THAT STERLING IS EASING UP ON THE CATEGORY BUT STERLING OFFICIALS SAY 1991 AD SPENDING LEVELS WERE UNUSUALLY HIGH REFLECTING THE BRAND'S LAUNCH SEE RELATED LETTER LETTERS TO THE EDITOR LACTOSE INTOLERANCE AFFECTS 50 MILLION WSJ JUNE 7 1993 9304200103 YY93 MM06 9306040187 930604 FINANCING BUSINESS NUEVO ENERGY CO NUEVO ENERGY CO HOUSTON SAID IT COMPLETED AN OFFERING OF 31 MILLION COMMON SHARES PRICED AT 2175 A SHARE WITH A DISCOUNT OF 108 A SHARE NUEVO SAID THE PROCEEDS OF ABOUT 371 MILLION WILL BE USED FOR GENERAL CORPORATE PURPOSES INCLUDING DEVELOPMENT DRILLING EXPLORATION AND ACQUISITION OF THE SHARES SOLD ABOUT 18 MILLION WERE NEWLY ISSUED AND 13 MILLION WERE SOLD BY SUBSIDIARIES OF TORCHMARK CORP A BIRMINGHAM ALA INVESTMENT CONCERN TORCHMARK'S STAKE IN NUEVO WAS REDUCED TO 136 FROM 314 AS A RESULT OF THE OFFERING THE SALE WAS MANAGED BY PAINEWEBBER INC 9306040186 930604 MARKETING & MEDIA BRITISH PUBLISHING HOUSE REACHES MERGER AGREEMENT LONDON REUTER HODDER & STOUGHTON HOLDINGS LTD WHICH PUBLISHES BESTSELLING THRILLER AUTHOR STEPHEN KING AND SPY NOVELIST JOHN LE CARRE SAID IT AGREED TO MERGE WITH FASTEXPANDING HEADLINE BOOK PUBLISHING PLC HEADLINE SAID IT WAS MAKING A STOCK OR ALTERNATIVE CASH AND STOCK OFFER VALUING THE 125YEAROLD FAMILY BUSINESS AT 489 MILLION 756 MILLION IT IS ALSO LAUNCHING A RIGHTS ISSUE TO RAISE 128 MILLION IN FRESH CASH FOR THE NEW COMPANY WHICH WILL BE CALLED HODDER HEADLINE PLC AND WILL BE LISTED ON THE LONDON STOCK EXCHANGE HEADLINE CHIEF EXECUTIVE TIM HEALY HUTCHINSON SAID THE NEW GROUP WHICH WILL HAVE ANNUAL SALES OF AROUND 80 MILLION AIMS TO MAINTAIN HEADLINE'S RECORD OF PROFITABILITY HEADLINE WAS FOUNDED SEVEN YEARS AGO AND PUBLISHES A RANGE OF TITLES IT WENT PUBLIC TWO YEARS AGO IN ADDITION TO MR KING AND MR LE CARRE HODDER PUBLISHES EDUCATIONAL CHILDREN'S AND RELIGIOUS BOOKS AND HAS A LIBRARY OF PREVIOUSLY PUBLISHED TITLES 9306040185 930604 INTERNATIONAL HONG KONG RETAIL SALES UP HONG KONG HONG KONG GOVERNMENT RETAIL SALES DATA SHOW PROVISIONAL SALES IN APRIL JUMPED 13 FROM THE YEAR EARLIER TO 136 BILLION HONG KONG DOLLARS US176 BILLION THE GOVERNMENT'S CENSUS AND STATISTICS DEPARTMENT ATTRIBUTED THE STRONG GROWTH IN RETAIL SALES WHICH COINCIDED WITH AN APPRECIATING HONG KONG STOCK MARKET TO INCREASED SPENDING FOR CLOTHING AND FOOTWEAR SALES OF DURABLE GOODS EXCLUDING CARS ALSO HELPED THE NUMBERS 9306040184 930604 WHO'S NEWS XLI CORP XLI CORP WOBURN MASS SAMUEL B COCO WAS ELECTED A DIRECTOR MR COCO 65 YEARS OLD IS A FORMER PRESIDENT OF CABOT CORP A SPECIALTY METALS PRODUCER IN BOSTON MR COCO SUCCEEDS ANTHONY D'AMELIO 65 WHO DIDN'T SEEK REELECTION MR D'AMELIO RESIGNED AS CHIEF FINANCIAL OFFICER IN MARCH XLI IS A LASER PRINTER CONCERN 9306040183 930604 KLM POSTS LOSS OF 313 MILLION FOR FISCAL YEAR DUTCH AIRLINE ANNOUNCES PLANS TO CUT FIRST CLASS FROM ITS JUMBO JETS BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL KLM ROYAL DUTCH AIRLINES SWUNG TO A NET LOSS OF 562 MILLION GUILDERS 313 MILLION IN THE YEAR ENDED MARCH 31 AND ANNOUNCED PLANS TO SCRAP FIRSTCLASS SEATING ON ITS JUMBO AIRCRAFT THE AIRLINE BLAMED MUCH OF THE DOWNTURN ON A 388 MILLION GUILDER LOSS ON ITS MINORITY HOLDINGS IN PARTICULAR IN NORTHWEST AIRLINES A UNIT OF WINGS HOLDINGS INC OF THE US IN THE YEAREARLIER PERIOD KLM POSTED PROFIT OF 125 MILLION GUILDERS THE AIRLINE INDUSTRY HAS ARRIVED IN THE MOST DIFFICULT PERIOD OF ITS HISTORY KLM PRESIDENT PIETER BOUW SAID NOTING THAT THE AIRLINE HOPES TO CARVE OUT AN ADDITIONAL 300 MILLION TO 400 MILLION GUILDERS OR ABOUT 10 FROM ITS ANNUAL COSTS THE GRIM FINANCIAL NEWS DIDN'T DAMP THE ENTHUSIASM OF ANALYSTS OR INVESTORS WHO WERE EXPECTING EVEN WORSE RESULTS KLM STOCK ROSE 90 DUTCH CENTS TO 2630 GUILDERS 1466 ON THE AMSTERDAM STOCK EXCHANGE IN TODAY'S MARKETPLACE IT'S A GOOD RESULT SAID ROEL GOOSKENS OF JAMES CAPEL & CO IN AMSTERDAM HE NOTED THAT TAKING AWAY THE DAMAGE DONE BY NORTHWEST LEFT KLM WITH A LOSS OF A MORE TOLERABLE 140 MILLION GUILDERS IN FACT KLM MANAGED AN OPERATING PROFIT OF 96 MILLION GUILDERS ALTHOUGH THAT WAS STILL DOWN FROM AN OPERATING PROFIT OF 416 MILLION GUILDERS A YEAR EARLIER THE AIRLINE HOPES TO TURN THINGS AROUND IN PART BY ELIMINATING ITS EXPENSIVE FIRSTCLASS SERVICE ON BOEING 747 JUMBO JETLINER FLIGHTS ALTHOUGH FIRSTCLASS PASSENGERS EARN THE AIRLINE SIZABLE PROFIT MARGINS ANALYSTS SAY MANY OF THOSE SEATS ARE OCCUPIED BY KLM STAFF OR UPGRADEDBUSINESS PASSENGERS INSTEAD THE AIRLINE PLANS TO EXPAND BY 10 THE NUMBER OF SEATS IN THE ECONOMYCLASS SECTION ON ITS 27 JUMBO AIRLINERS A MOVE INTENDED TO CAPITALIZE ON THE GROWING DEMAND FOR TOURIST TICKETS THESE RECONFIGURATIONS SHOULD LEAD TO A SIGNIFICANT IMPROVEMENT IN THE EXPLOITATION OF SEVERAL TENS OF MILLIONS OF GUILDERS MR BOUW SAID KLM DIDN'T SAY WHAT PERCENTAGE OF FLIGHTS THE CHANGE WOULD AFFECT BUT IT HAS 27 747S OUT OF A TOTAL FLEET OF ABOUT 90 PLANES KLM SAID IT IS ALSO CONSIDERING OFFERING BUSINESSCLASS PASSENGERS A SLEEPERSEAT FOR A SURCHARGE A STRATEGY SIMILAR TO THAT PURSUED BY BRITISH AIRWAYS AND SCANDINAVIAN AIRLINES SYSTEM THE CHANGEOVER WILL TAKE PLACE THIS AUTUMN KLM ISN'T THE FIRST AIRLINE TO WIPE OUT FIRSTCLASS SERVICE CONTINENTAL AIRLINES THREW OUT ITS FIRSTCLASS CABIN EARLIER THIS YEAR ON ITS INTERNATIONAL FLIGHTS AND INSTEAD DOUBLED THE NUMBER OF ITS BUSINESSCLASS SEATS THE AIRLINE CALLS THIS EXPANDED SERVICE BUSINESS FIRST WHICH ESSENTIALLY OFFERS FIRSTCLASS SERVICE AT BUSINESSLEVEL FARES OTHER US CARRIERS WILL BE WATCHING KLM'S MOVE WITH INTEREST ELSEWHERE ON KLM'S BALANCE SHEET THE AIRLINE'S MINORITY HOLDINGS HAVE BEEN A SOURCE OF CONSTANT TROUBLE THE AIRLINE FINALLY ELECTED DURING THE FIRST THREE QUARTERS OF FISCAL 1993 TO WRITE OFF ITS ENTIRE 438 MILLION GUILDER INVESTMENT IN NORTHWEST BUT THAT HASN'T BEEN THE DUTCH AIRLINE'S ONLY WORRY WITH ALMOST NO DOMESTIC MARKET AND A TINY SHARE OF THE EUROPEAN MARKET KLM IS PARTICULARLY DEPENDENT ON ITS LONGHAUL ROUTES AND THOSE HAVE COME UNDER INCREASING PRESSURE AS AIRLINES THROUGHOUT THE WORLD SLASH TICKET PRICES IN A BATTLE FOR MARKET SHARE THAT CAUSED KLM'S INCOME PER PASSENGER KNOWN IN THE INDUSTRY AS YIELDS TO PLUNGE 9 FOR THE YEAR ENDED MARCH 31 EVEN AS PASSENGER TRAFFIC ROSE 15 THE SAME TREND HAPPENED TO ITS CARGO BUSINESS WHERE TRAFFIC ROSE 9 BUT YIELDS FELL 13 FOR KLM IT'S HARD TO SEE THE LIGHT AT THE END OF THE TUNNEL SAID JAMES CAPEL'S MR GOOSKENS WHO NONETHELESS BELIEVES THE AIRLINE IS WELL POSITIONED FOR ANY TURNAROUND SOME LIGHT COULD COME IN ABOUT SIX MONTHS SAID TACO SIEBURGH OF UBS PHILLIPS & DREW IN LONDON HE NOTED THAT A MAJOR REASON FOR THE FALL IN YIELDS WAS THE DECLINE IN MANY MAJOR EUROPEAN CURRENCIES AGAINST THE GUILDER AN EFFECT THAT SHOULD HAVE WORKED ITSELF OUT BY THE SECOND HALF OF THE CURRENT FISCAL YEAR HE ALSO PREDICTS A RISE IN THE DOLLAR WHICH WOULD HELP KLM FURTHERMORE ANALYSTS WERE ENCOURAGED BY KLM'S ABILITY TO MANAGE COSTS THE AIRLINE'S OVERALL OPERATING EXPENSES ROSE BY 8 FOR THE FISCAL YEAR BUT MANAGEMENT HELD STAFF EXPENSES TO A 5 INCREASE FINALLY THE AIRLINE'S PLANS TO LINK UP WITH THREE OTHER MAJOR AIRLINES HOLDS THE POTENTIAL FOR LONGTERM BENEFITS KLM IS IN TALKS ON AN ALLIANCE WITH SAS SWISSAIR AND AUSTRIAN AIRLINES IT'S THE ICING ON THE CAKE SAYS MR SIEBURGH 9306040182 930604 SYMIX SYSTEMS PLANS BUYBACK COLUMBUS OHIO SYMIX SYSTEMS INC SAID THE BOARD AUTHORIZED THE OCCASIONAL REPURCHASE OF AS MANY AS 200000 COMMON SHARES BY AUG31 ON THE OPEN MARKET OR IN PRIVATE TRANSACTIONS CURRENTLY SYMIX HAS 27 MILLION SHARES OUTSTANDING THE COMPANY SAID ITS BOARD BELIEVES THAT ITS COMMON STOCK IS UNDERVALUED AND THAT A REPURCHASE WOULD BENEFIT THE COMPANY SHAREHOLDERS AND EMPLOYEES SYMIX DESIGNS AND DEVELOPS MANUFACTURINGCONTROL ACCOUNTING AND FINANCIALMANAGEMENT SOFTWARE SYSTEMS 9306040181 930604 WHO'S NEWS CIRCA PHARMACEUTICALS INC CIRCA PHARMACEUTICALS INC COPIAGUE NY THOMAS P RICE 43 YEARS OLD WAS NAMED CHIEF OPERATING OFFICER AND CHIEF FINANCIAL OFFICER AT THIS PHARMACEUTICAL CONCERN MR RICE MOST RECENTLY WORKED AS A FINANCIAL CONSULTANT DAVID GENZLER 40 THE FORMER FINANCE CHIEF LEFT THE COMPANY TO PURSUE OTHER ACTIVITIES 9306040180 930604 WHO'S NEWS COMPTEK RESEARCH INC COMPTEK RESEARCH INC BUFFALO NY GEORGE BARRY 39 YEARS OLD FORMERLY VICE PRESIDENT COMMERCIALIZATION OF KANSAS TECHNOLOGY ENTERPRISE CORP AN AFFILIATE OF KANSAS STATE UNIVERSITY WAS NAMED TO THE NEW POST OF VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS SUPPLIER OF ELECTRONICS AND DATA COMMUNICATION SYSTEMS TO GOVERNMENT AND INDUSTRY THE COMPANY SAID THE DUTIES OF FINANCE CHIEF HAD PREVIOUSLY BEEN SHARED BY SEVERAL COMPTEK EXECUTIVES 9306040179 930604 WHO'S NEWS ESKIMO PIE CORP ESKIMO PIE CORP RICHMOND VA THIS MAKER OF ICE CREAM PRODUCTS SAID JOHN T HERZOG 31 YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER EFFECTIVE NEXT MONDAY MR HERZOG PREVIOUSLY WAS VICE PRESIDENT OF CORPORATE FINANCE AT WHEAT FIRST SECURITIES INC WHICH WAS THE UNDERWRITER OF ESKIMO PIE'S INITIAL PUBLIC OFFERING LAST YEAR HE SUCCEEDS WILLIAM M FARISS JR 67 WHO IS RETIRING BUT WILL CONTINUE AS A BOARD MEMBER 9306040178 930604 WHO'S NEWS PREFERRED HEALTH CARE LTD PREFERRED HEALTH CARE LTD WILTON CONN JOHN ADDEO 45 YEARS OLD WAS APPOINTED SENIOR VICE PRESIDENT CHIEF FINANCIAL OFFICER AND TREASURER AT THIS PROVIDER OF MANAGED HEALTHCARE SERVICES HE SUCCEEDS WILLIAM V HOYT WHO RETIRED MR ADDEO PREVIOUSLY WAS SENIOR VICE PRESIDENT AND TREASURER OF FRANK B HALL INC WHERE HE ALSO SERVED AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE ADJUSTCO INC SUBSIDIARY UNTIL IT WAS ACQUIRED BY PREFERRED HEALTH IN DECEMBER 9306040177 930604 SOMEWHERE IN EVERY MAN'S DNA THERE MAY BE A GENE FOR SIRLOIN BY ES BROWNING STAFF REPORTER OF THE WALL STREET JOURNAL FROM A LONDON ADVERTISING AGENCY COMES EVIDENCE FOR A MAXIM EVERY WOMAN ALREADY KNEW DON'T SEND YOUR HUSBAND SHOPPING NOW IN A MOVE THAT COULD SAVE MARRIAGES EVERYWHERE LONDON AD AGENCY LOWE HOWARDSPINK OFFERS EVIDENCE THAT YOUR FAMILY ISN'T ALONE ALL HUSBANDS DO THIS IT MAY BE GENETIC LOWE HOWARDSPINK DOESN'T ACTUALLY PROVIDE GENETIC EVIDENCE IT DOES OFFER A STUDY BASED ON PURCHASES BY 167 BRITISH COUPLES THE AGENCY GAVE EACH MAN AND EACH WOMAN THE SAME SHOPPING LIST THEN CHECKED THE RESULTS AND INTERVIEWED THE COUPLES LOWE DID THE STUDY BECAUSE IT HAD DISCOVERED THAT WITH SO MANY WIVES WORKING MEN NOW ACCOUNT FOR 30 OF GROCERY PURCHASES IN BRITAIN HUSBANDS AND BOYFRIENDS CLEARLY BUY DIFFERENTLY THAN WIVES/GIRLFRIENDS EVEN WHEN THEY HAVE THE SAME AMOUNT OF SHOPPING EXPERIENCE SAYS CATHY CLIFT LOWE'S PLANNING DIRECTOR MEN DON'T FEEL GUILTY ABOUT FOOD SHE SAYS AND THEY TEND TO VALUE THEMSELVES MORE HIGHLY AND DON'T PUT OTHERS AHEAD OF THEMSELVES SO CONSISTENTLY SHE DOESN'T HAVE COMPARABLE DATA FROM OUTSIDE BRITAIN BUT THE CLEAR SEX DIFFERENCES MAKE HER SUSPECT RESULTS WOULD BE SIMILAR IN MOST WESTERN COUNTRIES MS CLIFT SAYS HUSBANDS CHOSE DIFFERENT BRANDS THAN WIVES 73 OF THE TIME EVEN WHEN A COUPLE AGREED ON WHAT THEIR USUAL BRAND WAS THEY STILL BOUGHT DIFFERENT BRANDS 43 OF TIME BOTH SEXES SELDOM USED SHOPPING LISTS AND WERE HEAVILY INFLUENCED BY INSTORE DISPLAYS HUSBANDS SPENT 5 MORE THAN WIVES ON AVERAGE MEN SPENT 10 MORE ON SHAMPOO 6 MORE ON BUTTER AND 5 MORE ON COFFEE THEY BOUGHT MORE ITEMS THAN WOMEN AND WERE MORE LIKELY TO BUY PREMIUM BRANDNAME ITEMS WHEN A MAN BOUGHT A SPECIAL TREAT HE GOT SOMETHING RELATIVELY EXPENSIVE LIKE STEAK OR WINE WOMEN INDULGED THEMSELVES LESS EXPENSIVELY WITH CREAM CAKE MAGAZINES OR FLOWERS SAYS MS CLIFT WOMEN TALK ABOUT OUR' MONEY MEN TALK ABOUT MY' MONEY MEN FEEL IT'S MY MONEY I'VE EARNED IT AND I CAN DO WHAT I WANT WITH IT SHE ADDS MY IMPRESSION IS THAT THEY FEEL WEALTHIER THAN THEIR WIVES DO 9306040176 930604 CONSOLIDATED STORES SALES COLUMBUS OHIO CONSOLIDATED STORES CORP SAID SALES FOR THE MONTH ENDED MAY 29 INCREASED 17 TO 726 MILLION FROM 621 MILLION A YEAR AGO COMPARABLESTORE SALES CLIMBED 56 THE COMPANY SAID COMPARABLESTORE SALES ARE THOSE IN STORES OPEN TWO YEARS AT THE BEGINNING OF THE FISCAL YEAR THE COMPANY WHICH OPERATES A CHAIN OF RETAIL CLOSEOUT STORES SAID SALES FOR THE FOUR MONTHS ENDED MAY 29 ROSE 12 TO 278 MILLION FROM 2483 MILLION A YEAR AGO 9306040175 930604 WHO'S NEWS ROBERTS PHARMACEUTICAL CORP ROBERTS PHARMACEUTICAL CORP EATONTOWN NJ JEROME WILSON 51 YEARS OLD WAS NAMED VICE PRESIDENT DEVELOPMENTAL THERAPEUTICS HE SUCCEEDS FRANK CARUSO 56 WHO IS NOW VICE PRESIDENT MEDICAL DEVELOPMENT ROBERTS SAID DR WILSON WHO HAS A DOCTORATE IN CANCEROCCUPATIONAL EPIDEMIOLOGY MOST RECENTLY WORKED AT WARNERLAMBERT CO AS DIRECTOR OF BIOSTATISTICS AND CLINICAL DATA MANAGEMENT 9306040174 930604 WHO'S NEWS PARKER HANNIFIN CORP PARKER HANNIFIN CORP CLEVELAND DUANE E COLLINS WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER EFFECTIVE JULY 1 HE SUCCEEDS PAUL G SCHLOEMER 65 YEARS OLD WHO WILL RETIRE IN JULY AFTER 36 YEARS WITH THE COMPANY PATRICK S PARKER WILL REMAIN CHAIRMAN MR COLLINS 57 HAS BEEN VICE CHAIRMAN OF THIS MAKER OF MOTIONCONTROL PARTS AND SYSTEMS FOR THE INDUSTRIAL AUTOMOTIVE AND AEROSPACE MARKETS MR SCHLOEMER WHO HAS BEEN PRESIDENT AND A DIRECTOR SINCE 1982 AND CEO SINCE 1984 WILL REMAIN A DIRECTOR 9306040173 930604 TECHNOLOGY EPA TOUTS COMPRESSOR FOR ITS ENERGY EFFICIENCY WASHINGTON ENVIRONMENTAL PROTECTION AGENCY ADMINISTRATOR CAROL BROWNER TOUTED A COMPRESSOR DESIGNED TO MAKE HOME REFRIGERATORS AND AIR CONDITIONERS MORE ENERGY EFFICIENT AS BEING A TECHNOLOGICAL BREAKTHROUGH THE TECHNOLOGY WAS DEVELOPED BY SUNPOWER INC A RESEARCH AND DEVELOPMENT FIRM IN ATHENS OHIO WITH THE AID OF AN EPA GRANT OF ROUGHLY 250000 THE COMPRESSOR DESIGN ELIMINATES THE NEED FOR A CRANK THAT CONVERTS THE CIRCULAR MOTION OF THE MOTOR INTO THE UPANDDOWN MOTION OF A PISTON ELIMINATING THIS STEP EPA OFFICIALS SAID ALLOWS AIR CONDITIONERS AND REFRIGERATORS TO USE 10 TO 15 LESS ENERGY AND CARBON DIOXIDE EMISSIONS WHICH CONTRIBUTE TO GLOBAL WARMING CAN BE REDUCED BY MORE THAN 20 BILLION POUNDS ANNUALLY THEY SAID IN ADDITION THE TECHNOLOGY ELIMINATES THE NEED TO USE OIL AS A LUBRICANT MAKING IT EASIER TO INSTALL SOME OF THE NEW COOLANTS INTENDED TO REPLACE CHLOROFLUOROCARBONS OR CFCS JOHN CRAWFORD PROGRAMS MANAGER AT SUNPOWER SAID THE COMPANY WAS IN DISCUSSIONS WITH AMERICOLD A UNIT OF WHITE CONSOLIDATED INDUSTRIES CLEVELAND ABOUT LICENSING THE DESIGN FOR MARKETING WHITE CONSOLIDATED INDUSTRIES IS A UNIT OF ELECTROLUX AB OF SWEDEN IN ADDITION WHIRLPOOL CORP BENTON HARBOR MICH IS SAID TO BE CONSIDERING MARKETING THE TECHNOLOGY 9306040172 930604 ASIAN MARKETS STRENGTHEN REGULATIONS BUT ADOPTING US RULES ISN'T A CUREALL BY ROBERT STEINER STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG SECURITIES ANALYSTS IN BANGKOK WERE PUZZLED LAST WEEK WHEN OFFICIALS AT SOME THAI COMPANIES WERE SUDDENLY RELUCTANT TO TALK WITH THEM THE PROBLEM IT TURNED OUT STEMMED FROM A STOCK EXCHANGE OF THAILAND WARNING IN LATE APRIL THAT LISTED COMPANIES MUST ANNOUNCE MATERIAL INFORMATION TO THE PUBLIC BEFORE DISCUSSING IT WITH ANALYSTS THAT REQUIREMENT IS TAKEN FOR GRANTED IN THE US WHERE THE DIRECTIVE IS A PART OF THE AMERICAN STOCK EXCHANGE'S CONSTITUTION AND LIKE MOST BOOMING ASIAN BOURSES THE STOCK EXCHANGE OF THAILAND WOULD LIKE TO ADOPT INTERNATIONAL STANDARDS OF REGULATION TOO EXPLAINS CHAIPAT SAHASAKUL THE EXCHANGE'S SENIOR VICE PRESIDENT UNFORTUNATELY ASIA'S MARKETS ARE DISCOVERING THAT WORDING AND TEXT ARE ONLY THE BARE BONES OF REGULATION THAILAND'S BUMPY INTRODUCTION OF THE AMEX RULE POINTS OUT THAT WHILE ASIAN SECURITIES REGULATIONS ARE IMPROVING EVEN BASIC SECURITIES LAWS FROM SOPHISTICATED MARKETS DON'T ALWAYS TRAVEL EASILY CONSIDER THE PHILIPPINES ITS SECURITIES AND EXCHANGE COMMISSION WAS RANKED AS THE WORST OF EIGHT ASIAN REGULATORY AGENCIES IN A JANUARY POLL OF MERCHANT BANKERS BY ASIAMONEY MAGAZINE THE PROBLEM ISN'T THE LAW AS A US COLONY IN THE 1930S THE PHILIPPINES ASSUMED THE SAME SECURITIES LAWS THAT STILL FORM THE CORNERSTONE OF US REGULATION NOR DOES THE COUNTRY'S SEC LACK TEETH IT HAS THE POWER TO TURN COMPANIES DOWN WHEN THEY TRY TO ISSUE SECURITIES AND UNLIKE ITS US COUNTERPART CAN EVEN ACT AS A QUASICOURT TO SETTLE DISPUTES THE PROBLEM SAY LAWYERS IN MANILA IS THAT NEITHER REGULATORS NOR INVESTORS EVER UNDERSTOOD THE SPIRIT OF THE US RULES THEY ADOPTED NEITHER HAVE USED THE RULES MUCH IN MANILA'S CLUBBY STOCK EXCHANGE SETTING SO ITS REGULATIONS HAVEN'T BEEN FINETUNED TO THE MARKET'S NEEDS BY LEGAL PRECEDENT INSTEAD REGULATORS HAVE SIMPLY PATCHED LOOPHOLES IN THEIR RULES WITH NEW RULES SAYS ANTONIO PICAZO A MANILA SECURITIES LAWYER THE RESULT SAY MARKET PARTICIPANTS IN THE PHILIPPINES IS SO MUCH REGULATION THAT PHILIPPINES SECURITIES LAW IS INCONSISTENT AND SLOW INITIAL PUBLIC OFFERINGS OF STOCK ROUTINELY TAKE FROM THREE TO FOUR MONTHS TO BE APPROVED DEPENDING ON THE SEC OFFICERS REVIEWING IT AND MR PICAZO FIGURES THAT ALMOST HALF OF THE REGULATIONS HE NEEDS TO KNOW ARE ACTUALLY UNWRITTEN THE TENDENCY TO MAKE NEW RULES RATHER THAN FINETUNE EXISTING ONES CAN ALSO MAKE IT DIFFICULT TO LAUNCH NEW PRODUCTS FOR WHICH THERE ARE NO ESTABLISHED REGULATIONS THE MANILA BRANCH OF NEW YORK'S CITIBANK ENCOUNTERED THE PROBLEM IN 1990 WHEN IT ASKED FOR APPROVAL TO PACKAGE ITS MORTGAGE LOANS INTO DEBT SECURITIES THAT IT COULD SELL PUBLICLY ALTHOUGH MORTGAGEBACKED SECURITIES ARE A BIG BUSINESS IN THE US THE PHILIPPINES' SEC AND ITS CENTRAL BANK TOOK TWO YEARS TO WRITE THE RULES APPROVING CITIBANK'S PLAN WITH ALL ITS REGULATIONS THE PHILIPPINES SEC HAS BECOME AN AGENCY OF INEFFECTIVE PAPER PUSHERS SUGGESTS ONE US ADVISER TO MANILA ON FINANCIAL REGULATION RIGHT NOW THEY HAVE INSUFFICIENT CAPABILITY TO MONITOR THE MARKET HE SAYS IF SOMEONE DOES A BLOCK TRADE THE SEC HAS NO IDEA UNTIL THREE OR FOUR DAYS LATER AND THEN THEY DON'T UNDERSTAND IT ROSARIO LOPEZ CHAIRMAN OF THE PHILIPPINES SEC ADMITS THAT HER AGENCY HAS FAILED TO REGULATE THE STOCK MARKET EFFECTIVELY BUT THE REASON SHE SAYS STEMS FROM THE MARKET'S OWN PRIMITIVENESS SHE NOTES THAT MANILA IS IN FACT HOST TO TWO STOCK EXCHANGES WHOSE MERGER SHOULD BE COMPLETED ONLY LATER THIS YEAR THAT HAS MEANT THE SAME SECURITIES SIMULTANEOUSLY TRADE AT DIFFERENT PRICES MAKING IT DIFFICULT FOR REGULATORS TO MONITOR MARKET ACTIVITY SHE ADDS THAT REGULATORS WERE UNABLE TO HONE THEIR SKILLS DURING YEARS OF BEARISH INVESTOR SENTIMENT THERE ARE VERY FEW CASES TO PROSECUTE BECAUSE THE MARKET HAS BEEN VERY BEARISH FOR THE LAST 10 YEARS SHE SAYS THERE HAVE BEEN FEW TRANSACTIONS HER PROBLEM IS PARTICULARLY ACUTE SHE SUGGESTS BECAUSE THE COMMISSION IS UNDERSTAFFED OF ITS 600 EMPLOYEES ONLY 200 ARE LAWYERS AND FINANCIAL PROFESSIONALS SHE EXPLAINS THE REST ARE CLERKS THE US STATE DEPARTMENT'S FOREIGN AID SECTION IS SPENDING 8 MILLION TO HELP PHILIPPINES SEC AGENTS MONITOR STOCK TRADING PART OF THAT MONEY WILL BUY THE AGENCY NEW MARKETWATCHING TECHNOLOGY DEVELOPED BY THE MIDWEST STOCK EXCHANGE US ADVISERS ALSO HELPED SET UP TAIWANESE SECURITIES REGULATIONS IN THE LATE 1960S DURING A PERIOD OF STRONG MILITARY AND ECONOMIC SUPPORT FOR THE ISLAND IN FACT TAIWANESE REGULATIONS SEEM MORE SCT ON SOME COUNTS THAN THEIR US MODELS FOR INSTANCE WHILE US REGULATIONS ALLOW ALMOST ANY COMPANY TO SELL SHARES ONCE INVESTORS ARE TOLD OF THE RISKS INVOLVED TAIWANESE REGULATIONS INSIST THAT A COMPANY DEMONSTRATE ITS FINANCIAL HEALTH BEFORE OFFERING SHARES PUBLICLY BUT TAIWAN'S REGULATIONS ALSO ARE BLUNTED BY THE COUNTRY'S LESS SOPHISTICATED LEGAL ENVIRONMENT AN IMMEDIATE PROBLEM IS THAT THE COUNTRY'S PRIMITIVE ADMINISTRATIVE LAW HAS LEFT ITS SEC WITHOUT THE POWERS IT NEEDS TO ENFORCE SECURITIES REGULATIONS SAYS LAWRENCE LIU A CONSULTANT AT THE LAW FIRM LEE & LI IN TAIPEI THE TAIWANESE SEC STILL LACKS THE RIGHT TO SUBPOENA WITNESSES OR DOCUMENTS FOR INSTANCE IT DEPENDS ON THE COOPERATION OF UNRELATED LAW ENFORCEMENT AGENCIES FOR THAT ALSO THE TAIWANESE SEC'S POLITICAL NEUTRALITY IS TAINTED BECAUSE IT'S ONLY A DEPARTMENT OF THE MINISTRY OF FINANCE MOREOVER MR LIU POINTS OUT WESTERN LAW QUICKLY APPLIED SOMETIMES CONFLICTS WITH THE CONFUCIAN PHILOSOPHY WHICH UNDERPINS BUSINESS AND LAW IN MUCH OF ASIA WHILE WESTERN LAW IS SUPPOSED TO SET THE TONE FOR BUSINESS RELATIONSHIPS CONFUCIAN TRADITION CONSIDERS LAW TO BE AN OUTGROWTH OF RELATIONSHIPS WITHIN A STRICT HIERARCHY HONG KONG'S HIGHLY REGARDED SECURITIES AND FUTURES COMMISSION UNWITTINGLY OR NOT GOES SOME WAY TOWARDS DEALING WITH THAT CONFLICT MANY OF ITS NEW LAWS ARE DEVELOPED IN CONSULTATION WITH PUBLIC COMPANIES AND MARKET PARTICIPANTS HONG KONG'S RULES CONCERNING CORPORATE MERGERS ARE ACTUALLY VOLUNTARY ITS STAFF WHICH INCLUDES BRITONS AMERICANS AND CANADIANS IN SENIOR POSITIONS IS ONE OF ASIA'S MOST DISCRIMINATING BORROWERS OF SECURITIES LAW SINCE THE BRITISH COLONY ADOPTED ITS SECURITIES ORDINANCE IN 1974 THE SFC HAS ADDED TO IT A DELICATE PATCHWORK OF LAWS FROM BRITAIN THE BRITISH COMMONWEALTH AND THE US ALTOGETHER HONG KONG HAS NINE RELEVANT ORDINANCES OF SECURITIES LAW RATHER THAN A SINGLE SECURITIES CODE BUT THAT PATCHWORK HAS ITS OWN HEADACHES WHAT'S AN INVESTOR TO DO FOR INSTANCE IF HIS FUTURES DEALER HAS DEFAULTED ON A PAYMENT AND HE'S LEFT AGGRIEVED BY THE HONG KONG FUTURES EXCHANGE'S DECISION ON THE MATTER THE COLONY'S COMMODITIES TRADING ORDINANCE DIRECTS THE INVESTOR TO AN APPEALS COMMITTEE WHICH ANOTHER ORDINANCE HAS LONG SINCE DISBANDED 9306040171 930604 AMERICAN AIR TRAFFIC INCREASES DALLAS AMERICAN AIRLINES REPORTED MAY TRAFFIC INCREASED 121 THE AIRLINE FLEW 86 BILLION REVENUE PASSENGER MILES COMPARED WITH 77 BILLION A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAID PASSENGER FLOWN ONE MILE THE LOAD FACTOR OR PERCENTAGE OF AVAILABLE SEATS FILLED INCREASED TO 612 FROM 609 FOR THE FIRST FIVE MONTHS OF THE YEAR AMERICAN AIRLINES A UNIT OF AMR CORP SAID ITS TRAFFIC INCREASED 104 TO 394 BILLION REVENUE PASSENGER MILES FROM 357 BILLION THE LOAD FACTOR INCREASED TO 591 FROM 589 9306040170 930604 FIVE HOTEL CHAINS JOIN FREQUENT FLIER PLAN OF THREE ASIA AIRLINES SINGAPORE FIVE HOTEL CHAINS THAT MANAGE 476 HOTELS AND RESORTS WORLDWIDE HAVE LINKED UP WITH PASSAGES THE FREQUENT FLIER PLAN TO BE LAUNCHED BY CATHAY PACIFIC MALAYSIAN AIRLINES AND SINGAPORE AIRLINES ASIAN FREQUENT FLYER PTE LTD A COMPANY WHOLLY OWNED BY THE THREE AIRLINES SAID THE HOTEL CHAINS ARE THE SHANGRILA HOTELS AND RESORTS PAN PACIFIC HOTELS AND RESORTS INTERCONTINENTAL HOTELS HYATT HOTELS AND RESORTS AND HILTON INTERNATIONAL HOTELS UNDER THE PLAN SCHEDULED TO START JULY 1 PASSAGES MEMBERS WHO STAY AT PARTICIPATING HOTELS WILL EARN POINT CREDIT IN THE FORM OF FREQUENT FLYER KILOMETERS THESE KILOMETERS EARNED WILL BE AUTOMATICALLY TRANSFERRED TO PASSAGES MEMBERS' ACCOUNTS MEMBERS WILL THEN BE ABLE TO RECEIVE AIRLINE UPGRADES AND FREE TICKETS ON THE THREE SHAREHOLDER AIRLINES THE UPGRADES CAN ALSO BE EARNED AND REDEEMED ON AIRLINE PARTNERS IN THE PLAN WHICH INCLUDE BRITISH AIRWAYS SWISSAIR AND AUSTRIAN AIRLINES 9306040169 930604 BUSINESS BRIEF FIELDCREST CANNON TO SELL CARPET DIVISION TO MOHAWK INDUSTRIES FOR 140 MILLION EDEN N C FIELDCREST CANNON INC ALREADY GRAPPLING WITH WHAT IT CALLS AN UNSOLICITED TAKEOVER BID SAID IT AGREED TO SELL ITS CARPET AND RUG DIVISION TO MOHAWK INDUSTRIES INC FOR APPROXIMATELY 140 MILLION IN CASH THE MOVE COMES ONE WEEK AFTER FIELDCREST BASED IN EDEN NC RECEIVED A PROPOSAL FROM SPRINGS INDUSTRIES INC TO ACQUIRE ALL THE SHARES OUTSTANDING OF BOTH FIELDCREST AND ITS CONTROLLING SHAREHOLDER AMOSKEAG CO FOR ABOUT 345 MILLION IN CASH AND STOCK FIELDCREST'S VICE PRESIDENTFINANCE TR STAAB SAID SPRINGS' PROPOSAL IS STILL BEING EVALUATED THE SHARE PRICE OF THE NEWEST PLAYER IN THE PROCEEDINGS MOHAWK A CARPET MANUFACTURER BASED IN ATLANTA JUMPED 25 ON NEWS OF THE SALE CLOSING AT 3425 UP 675 IN OVERTHECOUNTER TRADING FIELDCREST CLOSED AT 28625 A SHARE UP 1125 OR 41 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE FIELDCREST DIVISION WITH 10 MANUFACTURING FACILITIES AND SALES IN 1992 OF 2355 MILLION WILL INCREASE THE SIZE OF MOHAWK BY MORE THAN TWOTHIRDS PERHAPS MOST IMPORTANT THE PURCHASE GIVES MOHAWK THE KARASTAN RUG OPERATION THE JEWEL OF THE NORTH AMERICAN INDUSTRY ACCORDING TO FRANK O'NEILL PUBLISHER OF FLOOR FOCUS A TRADE MAGAZINE AMOSKEAG A BOSTONBASED INVESTMENT CONCERN THAT CONTROLS 807 OF THE VOTING POWER OF FIELDCREST AND 301 OF THE CAPITAL STOCK DECLINED TO COMMENT THE DUMAINES TRUST WHICH CONTROLS BOTH AMOSKEAG AND FIELDCREST TOOK STEPS IN JANUARY TO SELL ITS INVESTMENT IN BOTH SPRINGS INDUSTRIES A MAKER OF HOME FURNISHINGS AND OTHER TEXTILE PRODUCTS BASED IN FORT MILLS SC DECLINED TO COMMENT ON THE SALE OF THE CARPET AND RUG DIVISION SPRINGS ACCORDING TO INDUSTRY ANALYSTS PROBABLY WASN'T INTERESTED IN FIELDCREST'S RUG AND CARPET OPERATIONS IN THE FIRST PLACE IT APPEARS TO BE PRIMARILY INTERESTED IN FIELDCREST'S LARGE TOWELMANUFACTURING OPERATIONS WHICH ACCOUNT FOR AN ESTIMATED 45 OF THE US MARKET THE SALE APPEARS LIKELY TO WORSEN STRAINED RELATIONS BETWEEN FIELDCREST AND THE AMALGAMATED CLOTHING AND TEXTILE WORKERS UNION LAST WEEK THE UNION FILED SUIT IN FEDERAL COURT IN NEW YORK ALLEGING THAT FIELDCREST AND THE TRUSTEES OF DUMAINES MISLED THE COMPANY'S SHAREHOLDERS BY DENYING THAT OUTSIDE PARTIES MIGHT SEEK CONTROL OF THE COMPANY YESTERDAY THE UNION ACCUSED THE COMPANY OF CONTINUING TO DESTABILIZE THE WORK ENVIRONMENT AT FIELDCREST FACILITIES 9306040168 930604 INTERNATIONAL SPAIN'S ECONOMIC BOOM TURNS INTO BUST PILE OF DEBT FROM THE '80S CASTS SHADOW OVER ELECTIONS BY PETER GUMBEL AND CARLTA VITZTHUM STAFF REPORTERS OF THE WALL STREET JOURNAL SEVILLE SPAIN AFTER A LONG FIESTA SPAIN IS WAKING UP TO A BAD HANGOVER AND A PILE OF OVERDUE BILLS GONE ARE THE VIBRANT GROWTH AND HEAVY INVESTMENT THAT TURNED THE NATION'S ECONOMY INTO ONE OF EUROPE'S MOST DYNAMIC IN THE MID1980S GONE TOO IS THE EUPHORIA SURROUNDING LAST YEAR'S TWO SHOWCASE EVENTS THE BARCELONA OLYMPICS AND THE EXPO '92 WORLD'S FAIR IN SEVILLE BOTH OF WHICH CAUSED A FLURRY OF SPENDING FOR NOW ALL THAT REMAINS IS PAINFUL RECESSION A STUBBORN 21 UNEMPLOYMENT RATE WESTERN EUROPE'S HIGHEST AND A BLOATED PUBLIC SECTOR THE END OF THE BOOM HAS COMPOUNDED THE WOES OF FELIPE GONZALEZ SPAIN'S PRIME MINISTER SINCE 1982 WHO IS FIGHTING A TOUGH BATTLE FOR A FOURTH TERM IN NATIONAL ELECTIONS THIS SUNDAY LONG THE INTERNATIONAL SYMBOL OF SPANISH DEMOCRACY MR GONZALEZ HAS BEEN HURT BY CORRUPTION SCANDALS AND FEUDS WITHIN HIS SOCIALIST PARTY AS WELL AS DISSATISFACTION WITH HIS GOVERNMENT'S ECONOMIC RECORD POLLS INDICATE A CLOSE RACE BETWEEN THE SOCIALISTS AND THE CONSERVATIVE PARTIDO POPULAR UNDER ITS 40YEAROLD NEW LEADER JOSE MARIA AZNAR THE ELECTION IS LIKELY TO GIVE NEITHER OF THE TWO MAIN PARTIES ENOUGH SEATS IN THE PARLIAMENT TO GOVERN ALONE THAT PROBABLY WILL FORCE ONE OR THE OTHER TO FORM AN ALLIANCE OR EVEN A FULLBLOWN COALITION WITH REGIONAL PARTIES FROM CATALONIA AND THE BASQUE AREA IN A NATION THAT IS GRADUALLY DEVOLVING POWER TO ITS 17 REGIONS THE PROSPECT OF JUST ONE OR TWO OF THESE AREAS BECOMING POLITICALLY PREEMINENT IS ALREADY CREATING FEARS AMONG THE OTHERS WEAK AND POSSIBLY UNSTABLE GOVERNMENT IS THE LAST THING THE SPANISH ECONOMY NEEDS AT THE MOMENT THE COMPETITIVENESS OF INDUSTRY AND TOURISM HAS BEEN BOOSTED BY THREE DEVALUATIONS OF THE PESETA SINCE SEPTEMBER BUSINESS HOWEVER STILL IS HOBBLED A TIGHT MONETARY POLICY KEPT INTEREST RATES HIGH EVEN AS THE ECONOMY FALTERED RIGID LABOR MARKET RESTRICTIONS MAKE IT DIFFICULT AND COSTLY TO FIRE WORKERS AND TAXES ARE RISING EVER HIGHER GROWING TO KEEP PACE WITH A BIG INCREASE IN GOVERNMENT SPENDING PARTICULARLY ON SOCIAL SECURITY SINCE A GENERAL STRIKE IN 1988 STATE UNEMPLOYMENT OUTLAYS PENSIONS AND HEALTHCARE COSTS HAVE SOARED ALMOST DOUBLING THE TOTAL SOCIAL SECURITY BILL AT LEAST SOME OF THAT MONEY HAS BEEN WASTED OR USED FRAUDULENTLY SAYS A RECENT SURVEY ON SPAIN BY THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT SPAIN MOREOVER CAN NO LONGER COUNT ON OUTSIDE HELP THE BOOM WAS FUELED IN PART BY SPAIN'S 1986 ENTRY INTO THE EUROPEAN COMMUNITY SPARKING A BURST OF FOREIGN INVESTMENT THE EC'S SIGHTS NOW ARE SET ON A FUTURE MONETARY UNION WHICH WILL REQUIRE SPAIN TO UNDERTAKE YEARS OF TOUGH CONSOLIDATION TO BRING ITS ECONOMY IN LINE WITH THOSE OF ITS NEIGHBORS WHEN WE ENTERED EUROPE IT WAS A BOOM LIKE A GODDESS SHOWERING GIFTS SAYS PEDRO SCHWARTZ OF THE NERA ECONOMIC CONSULTING AGENCY IN MADRID NOW WE HAVE TO PUT OUR OWN HOUSE IN ORDER THE ANDALUSIAN REGION WITH ITS CAPITAL OF SEVILLE MR GONZALEZ'S HOMETOWN ILLUSTRATES THE SOBERINGUP PROCESS SPAIN IS UNDERGOING TWICE THE SIZE OF SWITZERLAND ANDALUSIA IS ONE OF SPAIN'S POOREST REGIONS ITS ECONOMY HAMSTRUNG BY AN INEFFICIENT FARM SECTOR UNEMPLOYMENT AT 26 IS THE NATION'S HIGHEST FOUR IN 10 OF THE JOBLESS ARE UNDER THE AGE OF 25 UNDER MR GONZALEZ'S PATRONAGE A GOVERNMENT SPENDING SPREE HAS BROUGHT TO ANDALUSIA A NETWORK OF NEW ROADS STATEOFTHEART TELECOMMUNICATIONS AND A HIGHSPEED TRAIN TO MADRID IN THE PAST DECADE THE SPANISH GOVERNMENT HAS INVESTED 10 BILLION IN THE REGION'S INFRASTRUCTURE LOCAL AUTHORITIES HAVE RUN UP BIG DEBTS ON TOP OF THAT AND THE PROFLIGATE SPENDING HAS ENABLED ANDALUSIA TO GROW FASTER THAN SPAIN AS A WHOLE OPPOSITION PARTIES ALLEGE THAT SOME OF THE OUTLAYS ARE DESIGNED TO BUY VOTES FOR MR GONZALEZ THE SOCIALIST PRESIDENT OF ANDALUSIA'S GOVERNMENT MANUEL CHAVES DENIES THE CHARGES THE GOVERNMENT SPENDING HE SAYS UPGRADES THE STANDARD OF LIVING WHERE PRIVATE INVESTMENT DOESN'T REACH WHATEVER THE CASE THE LARGESSE HAS BROUGHT A SEA CHANGE IN SPANISH VOTING PATTERNS MR GONZALEZ'S SOCIALISTS USED TO RELY ON THE SUPPORT OF THE YOUNG URBAN MIDDLE CLASSES BUT THEY HAVE INCREASINGLY BECOME THE PARTY OF THE RURAL POOR AND THE ELDERLY TRADITIONALLY THE CONSTITUENCY OF THEIR CONSERVATIVE OPPONENTS IN ANDALUSIA EVERYONE VOTED FOR THE SOCIALISTS THEY WERE YOUNG AND FILLED WITH ENERGY SAYS JOSE MARIA REQUENA THE SEVILLE AUTHOR WHOSE NOVEL ABOUT BULLFIGHTING WON ONE OF SPAIN'S MOST PRESTIGIOUS LITERARY PRIZES BUT NOW HE SAYS THEY ARE SUFFERING FROM POLITICAL EXHAUSTION THE GOVERNMENT'S SPENDING BOOM ALSO HAS FAILED TO CURE SOME OF THE REGION'S MOST INTRACTABLE PROBLEMS AND MAY EVEN HAVE WORSENED OTHERS THE EXPO '92 WHICH ATTRACTED ABOUT 18 MILLION VISITORS OVER SIX MONTHS ENABLED SEVILLE TO STAVE OFF RECESSION FOR A FEW MONTHS LONGER THAN IT OTHERWISE COULD HAVE BUT THE LANDING WHEN IT CAME WAS ALL THE HARDER FOR A LONG TIME EVERYONE HERE THOUGHT SEVILLE WAS THE CENTER OF THE WORLD SAYS BALTASAR FERNANDEZ AVILA A SENIOR OFFICIAL AT THE CONFEDERATION OF ANDALUSIAN INDUSTRY THEN IN OCTOBER EVERYONE REDISCOVERED THAT WE ARE ONE OF THE POOREST REGIONS OF EUROPE OFFICIALS IN ANDALUSIA SAY THE UPGRADED INFRASTRUCTURE WILL PROVIDE A STRONG BASIS FOR BUSINESSES MOVING INTO THE AREA BUT THE COST OF CREATING THE BADLY NEEDED JOBS IS HIGH JOSE MANUEL ROMERO ALVAREZ WHO HEADS ANDALUSIA'S REGIONAL DEVELOPMENT AGENCY PUTS THE FIGURE AT FIVE MILLION PESETAS 39920 OF INVESTMENT FOR EACH NEW JOB AND IT REMAINS TO BE SEEN WHETHER FOREIGN INVESTORS REALLY WILL FLOCK TO THE EXPO '92 SITE ANDALUSIA IS BANKRUPT SAYS SALVADOR PEREZBUENO A LOCAL NATIONALIST POLITICIAN WHOSE MAIN FEAR IS THAT ANDALUSIA WILL LOSE MUCH OF ITS CLOUT IN MADRID AFTER THE ELECTIONS NO MATTER WHO WINS HE GRIPES THE CATALANS WILL GOVERN 9306040167 930604 CANYON RESOURCES SAYS IT SECURED FINANCING TOTALING 279 MILLION GOLDEN COLORADO CANYON RESOURCES CORP SAID IT HAS SECURED 279 MILLION IN FINANCING TO PROVIDE CAPITAL FOR ITS GOLD MINING AND EXPLORATION ACTIVITIES CANYON SAID IT SOLD 22 MILLION OF SUBORDINATED CONVERTIBLE NOTES AND IN A SEPARATE TRANSACTION ARRANGED A 59 MILLION GOLD LOAN FACILITY WITH NM ROTHSCHILD & SONS LTD THE NOTES SOLD IN A PRIVATE PLACEMENT HAVE A FIVEYEAR TERM CARRY A 6 INTEREST RATE ARE PAYABLE SEMIANNUALLY AND ARE CONVERTIBLE AT ANY TIME PRIOR TO MATURITY INTO CANYON COMMON STOCK AT A PRICE OF 345 A SHARE THE GOLD LOAN FACILITY INCLUDES A 4 MILLION GOLD LOAN AND A 19 MILLION LETTER OF CREDIT TO SUPPORT A RECLAMATION BOND FOR THE KENDALL GOLD MINE IN MONTANA THE LOAN IS DUE TO BE REPAID BY DEC 31 1994 FROM THE MINE'S GOLD PRODUCTION 9306040166 930604 PAYROLL EXPRESS HEAD CHARGED WITH FRAUD WAIVES INDICTMENT NEW YORK THE PRESIDENT OF A PAYROLL CHECKCASHING COMPANY THAT COLLAPSED LAST YEAR AFTER ALLEGATIONS IT STOLE 25 MILLION FROM CLIENTS WAS CHARGED WITH FRAUD AND OTHER CRIMES ROBERT FELZENBERG WHO WITH HIS WIFE OWNED THE NOWDEFUNCT PAYROLL EXPRESS CORP AGREED YESTERDAY TO WAIVE A FORMAL INDICTMENT AND BE CHARGED BY INFORMATION TYPICALLY A DEFENDANT AGREES TO WAIVE INDICTMENT WHEN HE HAS A PLEA AGREEMENT WITH THE GOVERNMENT ACCORDING TO THE INFORMATION MR FELZENBERG DIVERTED MONEY THAT CORPORATE CLIENTS GAVE PAYROLL EXPRESS TO MEET THEIR PAYROLLS INTO HIS PERSONAL ACCOUNTS OR THOSE OF OTHER COMPANIES HE CONTROLLED AMONG PAYROLL EXPRESS'S CLIENTS WERE LOCAL GOVERNMENT AGENCIES NEW YORK HOSPITALS AND THE NEW YORK STOCK EXCHANGE MR FELZENBERG WAS CHARGED WITH ONE COUNT OF STEALING FROM A GOVERNMENT AGENCY TWO COUNTS OF FRAUD AND ONE COUNT OF A CRIMINAL TAX VIOLATION 9306040165 930604 ABT BORROWS STEPS FROM BIG BUSINESS TO REVAMP FINANCES BALLET TROUPE TRIMS COSTS RECRUITS STAR FUNDRAISERS TO ENHANCE BOTTOM LINE BY PAMELA SEBASTIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERICAN BALLET THEATRE IS GETTING BACK ON ITS FINANCIAL FEET VIA THE CLASSIC CORPORATE REVAMP ROUTE CUT LABOR COSTS CURB DEBT RECRUIT HIGHVOLTAGE MANAGEMENT STICK TO BASICS THEN GET JACQUELINE KENNEDY ONASSIS TO HELP RAISE FUNDS ABT ONE OF THE LARGEST TROUPES IN THE US WAS ON THE BRINK OF FINANCIAL DISASTER JUST LAST YEAR BUT THIS WEEK THE COMPANY ANNOUNCED THAT IT HAS RAISED NEARLY 3 MILLION OF AN 8 MILLION GOAL THE GIFTS HAVE ALLOWED IT TO PAY OFF 2 MILLION IN BANK DEBT AND PUT 1 MILLION TOWARD A NEW PRODUCTION OF THE NUTCRACKER A TRADITIONAL CASH COW FOR BALLET COMPANIES IN ADDITION LABOR CONCESSIONS BY THE AMERICAN GUILD OF MUSICAL ARTISTS WHICH REPRESENTS DANCERS WILL SAVE 3 MILLION OVER TWO YEARS SAYS GARY DUNNING ABT'S EXECUTIVE DIRECTOR WHO CAME ON BOARD LAST OCTOBER ALONG WITH KEVIN MCKENZIE THE NEW ARTISTIC DIRECTOR THE STEPS INCLUDE A WAGE FREEZE AND A CUTBACK IN GUARANTEED WORK WEEKS TO 26 FROM 36 HAVING ADOPTED A SERIOUS BUSINESS PLAN TO STABLIZE THE COMPANY SAYS MR DUNNING THE BALLET'S BACKERS ARE BEEFING UP FUND RAISING WITH A SORT OF SWAT TEAM THAT INCLUDES MRS ONASSIS AND PETER JOSEPH THE NEW BOARD PRESIDENT WHO ORGANIZED THE PARTNERSHIP FOR ABT OTHER HEAVY HITTERS INCLUDE MUSICIAN PETER DUCHIN AND WILBUR ROSS A SENIOR MANAGING DIRECTOR AT ROTHSCHILD INC NEW YORK LAST YEAR OUR SURVIVAL WAS AT ISSUE WE'RE PAST THAT POINT SAYS MR JOSEPH WHO IS CHAIRMAN OF ROSECLIFF INC A MERCHANT BANKING FIRM IN NEW YORK BUD WOLFF NATIONAL EXECUTIVE SECRETARY OF THE ARTISTS' UNION ADDS THAT ABT NOW HAS A POWERHOUSE TEAM WORKING FOR THEM ASKED WHICH HE WOULD CREDIT MORE FOR THE TURNAROUNDTHE BUSINESS PLAN OR THE FUNDRAISING TEAMMR WOLFF SAYS I WOULD TAKE JACKIE ONASSIS AND YOU CAN HAVE THE HARVARD BUSINESS SCHOOL ABT SAYS 15 DIRECTORS WELL OVER HALF THE BOARD CONTRIBUTED GIFTS TO HELP REDUCE THE BANK DEBT ABT BEGAN ITS NEW YORK SEASON LAST MONTH WITH A 57 MILLION DEFICIT THAT INCLUDED THE 2 MILLION IN BANK LOANS AND DEFICITS ACCUMULATED UNDER THE PREVIOUS TWO ARTISTIC DIRECTORS MIKHAIL BARYSHNIKOV AND JANE HERMANN JUST LAST SUMMER ABT CONSIDERED MERGING WITH ANOTHER COMPANY THE JOFFREY BALLET FROM A BUSINESS POINT OF VIEW THERE WAS SOME LOGIC TO A MERGER SAYS MR JOSEPH BUT HE NOTED THE GROUPS HAVE VERY DIFFERENT ARTISTIC PROFILES FOR ITS PART THE JOFFREY BALLET AGREES THAT THE TROUPES' MISSIONS ARE DIFFERENT AND ADDS IT TOO HAS MADE FINANCIAL STRIDES SINCE LAST SUMMER CC CONNER EXECUTIVE DIRECTOR OF THE JOFFREY SAYS ITS NEW WORK THE ROCK BALLET BILLBOARDS HAS PLAYED TO SOLDOUT HOUSES AND HAS BEEN VERY VERY BENEFICIAL FOR THE COMPANY WHAT'S MORE MR CONNER SAYS THE JOFFREY HAS INCREASED THE NUMBER OF PRESENTED OR LOCALLY SPONSORED PRODUCTIONS AND REDUCED THE RISK OF SELFPRODUCTIONS SEEKING TO RAISE 5 MILLION MORE ABT HOPES THE BOARD'S WILLINGNESS TO DIG INTO ITS POCKETS WILL BE AN INFLUENTIAL SIGNAL TO OTHER POTENTIAL DONORS ABT'S BUDGET FOR THE CURRENT FISCAL YEAR IS 146 MILLION DOWN FROM 175 MILLION LAST YEAR DANCE COMPANIES HAVE BEEN HIT PARTICULARLY HARD AMONG ARTS GROUPS BY REDUCED CORPORATE AND FEDERAL CONTRIBUTIONS 9306040164 930604 BED BATH & BEYOND'S MAY SALES SPRINGFIELD NJ BED BATH & BEYOND INC SAID ITS MAY SALES ROSE 47 TO 243 MILLION FROM 165 MILLION A YEAR EARLIER THE RETAILER OF HOME MERCHANDISE SAID ITS MAY SALES AT STORES OPEN AT LEAST A YEAR ROSE 96 FROM MAY 1992 9306040163 930604 PIER 1 IMPORTS POSTS GAINS FORT WORTH TEXAS PIER 1 IMPORTS INC SAID SALES IN THE FOURWEEK PERIOD ENDED SATURDAY ROSE 49 TO 537 MILLION FROM 512 MILLION A YEAR EARLIER SALES AT PIER 1'S HOME FURNISHINGS SPECIALTY STORES OPEN MORE THAN A YEAR INCREASED 2 THE COMPANY SAID FOR THE FIRST QUARTER ENDED MAY 29 COMPARABLESTORE SALES WERE UP 1 PIER 1 SAID AND TOTAL SALES ROSE 43 TO 1586 MILLION FROM 1521 MILLION 9306040162 930604 ENTERPRISE GOVERNMENT WATCH FDA FOOTDRAGGING STYMIES MEDICAL DEVICE MAKERS BY BRENT BOWERS STAFF REPORTER OF THE WALL STREET JOURNAL MORE MAKERS OF MEDICAL EQUIPMENT CHAFE AS FDA FOOTDRAGGING WORSENS A LOGJAM AT THE FOOD AND DRUG ADMINISTRATION IN APPROVING MEDICAL DEVICES IS CREATING PARTICULAR HAVOC AT SMALL COMPANIES THE BACKLOG OF REQUESTS TO SELL 510K DEVICES THOSE SUBSTANTIALLY EQUIVALENT TO EQUIPMENT ALREADY ON THE MARKET MORE THAN DOUBLED TO 3950 LAST SEPTEMBER FROM 1900 TWO YEARS EARLIER AND THE NUMBER IS GROWING THE FDA CONCEDES THE AVERAGE REVIEW TIME HAS SHOT UP TO ABOUT 170 DAYS FROM 98 IN 1990 SOME BUSINESSES ARE KEPT HANGING FOR MORE THAN A YEAR DYNATRONICS LASER CORP IN SALT LAKE CITY SAYS IT WAITED 13 MONTHS BEFORE GETTING THE GOAHEAD IN MARCH TO MARKET ITS THERAPEUTIC ULTRASOUND MACHINE THE COMPANY ESTIMATES IT LOST 1 MILLION IN SALES A MAJOR HIT AT A COMPANY WITH ANNUAL REVENUE OF 7 MILLION IT'S A COLOSSAL MESS DECLARES LARRY PILOT COUNSEL TO THE MEDICAL DEVICE MANUFACTURERS ASSOCIATION A WASHINGTON TRADE GROUP THE DELAYS FRUSTRATE A VIBRANT SECTOR OF THE US ECONOMY 11000 MOSTLY SMALL COMPANIES THAT THE HEALTH INDUSTRY MANUFACTURERS ASSOCIATION SAYS PRODUCE CLOSE TO HALF THE WORLD'S MEDICAL INSTRUMENTS LAST YEAR THESE COMPANIES HAD 40 BILLION IN SALES AND GAVE THE US A 39 BILLION TRADE SURPLUS IN SUCH EQUIPMENT ENTREPRENEURS GRIPE THAT THEY CAN READILY GET FOREIGN APPROVAL FOR PRODUCTS WHILE THEIR APPLICATIONS LANGUISH AT HOME GRANT WRIGHT PRESIDENT OF INVENTIVE PRODUCTS INC DECATUR ILL SAYS HE SOUGHT AUTHORIZATION EIGHT YEARS AGO TO SELL A BREASTEXAMINATION DEVICE IN THE US AND CANADA HE SAYS CANADA APPROVED IT WITHIN WEEKS BUT HE IS STILL AWAITING FDA PERMISSION HE ADDS THAT THE FIGHT HAS COST HIM 25 MILLION AND FORCED HIM TO LAY OFF MOST OF HIS WORKERS I DON'T UNDERSTAND WHAT'S GOING ON HE SAYS EVEN GIANT CORPORATIONS THAT CAN ABSORB THE COST OF DELAYS ARE SQUAWKING BEN HOLMES HEAD OF HEWLETTPACKARD CO'S MEDICAL PRODUCTS GROUP SAYS THE UNIT HAS BEEN WAITING 13 MONTHS FOR APPROVAL TO SELL SEPARATELY TWO FETAL MONITORS THAT ARE CURRENTLY MARKETED AS A PACKAGE WHAT IS THE HOLDUP HE WONDERS THE FDA ACKNOWLEDGES THE SEVERITY OF THE PROBLEM AND SAYS IT IS INTENT ON RESOLVING IT IT'S NOT OUR GOAL TO CHOKE INDUSTRY DECLARES BRUCE BURLINGTON THE NEW DIRECTOR OF THE 510K PROGRAM WE HAVE TO FIND WAYS TO WORK SMARTER UNTIL HE SUCCEEDS THOUGH THE FDA IS CERTAIN TO TAKE MORE HEAT BIOMEDICAL MARKET NEWSLETTER MOCKS THE AGENCY WITH A HALL OF SHAME LIST OF RECENTLY APPROVED PRODUCTS INCLUDING A DISPOSABLE SHOE COVER THAT PUBLISHER DAVID ANAST SAYS SHOULD NEVER HAVE BEEN PUT THROUGH THE REGULATORY TREADMILL A HOUSE PANEL THIS WEEK SAID THE GRIDLOCK HAS DEMORALIZED AND PERPLEXED MUCH OF THE INDUSTRY ILLINOIS UPSTART BATTLES STATE OVER THE OLD FOLKS AT HOME UNDER ILLINOIS LAW AN ELDERLY COUPLE LIVING IN A SHELTEREDCARE FACILITY MUST GET PERMISSION FROM THE DEPARTMENT OF PUBLIC HEALTH TO SLEEP IN THE SAME BED DAVID FOSTER IS PUSHING FOR LEGISLATION THAT WOULD GET RID OF THAT BIG BROTHER PROVISION AND A WELTER OF OTHER REGULATIONS MORE TO THE POINT THE PROPOSED LEGISLATION WOULD LEGALIZE HIS UNLICENSED BOARDANDCARE BUSINESS AND HUNDREDS OF OTHERS LIKE IT IN THE STATE MR FOSTER SAYS THE BOARDANDCARE CENTERS MOSTLY CONVERTED PRIVATE HOMES CHARGE LESS THAN A THIRD OF THE AVERAGE 3200 MONTHLY NURSING HOME FEE IN ILLINOIS THE ENTREPRENEUR FOUNDED THE UNITED ASSOCIATION OF BOARD AND CARE LTD IN 1990 TO LOBBY FOR CHANGE AFTER AUTHORITIES THREATENED TO SHUT HIM DOWN LETTING MOMANDPOP CARE PROVIDERS OPERATE IN THE OPEN COULD SAVE THE STATE HUNDREDS OF MILLIONS OF DOLLARS IN NURSINGHOME EXPENSES AND SET AN EXAMPLE IN COST CONTAINMENT MR FOSTER SAYS THESE PEOPLE WANT TO BE IN HOMELIKE SETTINGS WITH KNICKKNACKS ON THE MANTLE NOT IN BLEAK INSTITUTIONS HE SAYS BY FORBIDDING THAT CHOICE HE ADDS THE STATE IS STOMPING ON THE CONSTITUTIONAL RIGHTS OF THE ELDERLY THE STATE DOESN'T SEE THINGS THAT WAY HEALTH OFFICIALS FEAR THAT INADEQUATELY TRAINED STAFF MEMBERS COULD ENDANGER RESIDENTS' SAFETY THEY OPPOSE LIFTING THE REQUIREMENT THAT ONLY LICENSED NURSES BE ALLOWED TO ADMINISTER MEDICINE OR PERSONAL CARE SUCH AS BATHS AND THEY HAVE TWO POWERFUL CONSTITUENCIES IN THEIR CORNER NURSES AND NURSING HOMES MR FOSTER RETORTS THAT THE BOARDANDCARE INDUSTRY COULD EASILY REGULATE ITSELF WITH STATE OVERSIGHT FOLLOWING SIMPLIFIED PROCEDURES THAT HIS GROUP HAS WRITTEN INTO A MODEL LAW SO FAR HE HAS WON THE BACKING OF STATE REP BOB DEJAEGHER THE DEMOCRATIC CHAIRMAN OF THE HOUSE'S COMMITTEE ON AGING MR DE JAEGHER SAYS NURSING HOMES HAVE BUILT THESE ULTRAMODERN FACILITIES AND THEY WANT TO GOUGE PEOPLE FOR AS MUCH AS THEY CAN CAN YOU TOP THIS ASKS LINDEN NJ MAYOR JOHN GREGORIO AS AN EXAMPLE OF OUTOFCONTROL REGULATIONS MR GREGORIO RECALLS A LOCAL RESIDENT WHO LOST HIS LUNCH AFTER TAKING A RADIOACTIVE IODINE PILL FOR A THYROID CONDITION THE NEW JERSEY DEPARTMENT OF ENVIRONMENTAL PROTECTION AND ENERGY DECLARED THE LOST MEAL RADIOACTIVE WASTE THEY DISPATCHED AN INSPECTOR AND A WASTEDISPOSAL CREW COMPLETE WITH MASKS AND GLOVES TO CLEAN IT UP AT THE DEPARTMENT'S BEHEST THE TOWN SENT A POLICE CAR FIRE TRUCK AND EMERGENCY VEHICLE TO ASSIST IN THE OPERATION WHICH COST THOUSANDS OF DOLLARS THE MAYOR SAYS A DEPARTMENT SPOKESMAN SAYS IT WAS OBLIGED TO ACT BECAUSE THE INCIDENT TOOK PLACE NEAR A SCHOOL AND THE MEDICATION CONTAINED HAZARDOUS RADIATION BUREAUCRATIC OVERKILL KNOWS NO STATE BOUNDARIES OF COURSE CHRIS JUBOK REGIONAL SALES MANAGER FOR ECOFLO SAYS THE SAVAGE MD WASTEMANAGEMENT CONCERN HAD A DEVIL OF A TIME DISPOSING OF OLD DISPLAY ANIMALS FROM THE SMITHSONIAN INSTITUTION BECAUSE THE CREATURES INCLUDING A WATER BUFFALO AND A WALRUS HAD BEEN TREATED AT THE TURN OF THE CENTURY WITH AN ARSENICBASED COMPOUND THEY WERE CATEGORIZED AS HAZARDOUS WASTE A DISPOSAL PLANT IN OHIO BALKED AT TAKING THEM BECAUSE A STATE REGULATION PROHIBITED IT FROM PROCESSING BIOLOGICAL MATERIAL FINALLY MR JUBOK SAYS THE FACILITY AGREED THAT IF THE CARCASSES HAD BEEN DEAD AND PRESERVED WITH CHEMICALS FOR 100 YEARS THEY WERE NO LONGER BIOLOGICALLY ACTIVE ODDS AND ENDS THE ENVIRONMENTAL DEFENSE FUND SAYS PETROLEUM IS LEAKING FROM 200000 OF THE NATION'S 800000PLUS ABOVEGROUND STORAGE TANKS TO PREVENT AND CLEAN UP SUCH SPILLS IT URGES FEDERAL LEGISLATION SIMILAR TO THAT ENACTED IN THE 1980S TO REGULATE UNDERGROUND TANKS YOU WON'T FIND THIS WORD IN THE DICTIONARY DAMBITS THAT IS WHAT THE BUSINESS JOURNAL OF NEW JERSEY CALLS THE DAMN BUREAUCRATS IN TRENTON THE STATE CAPITAL 9306040161 930604 LEND LEASE SEES SURE THING' IN WESTPAC FIRM SAYS STAKE IN BANK HOLDS BIG OPPORTUNITIES BY S KARENE WITCHER STAFF REPORTER OF THE WALL STREET JOURNAL SYDNEY AUSTRALIA AT LEND LEASE CORP DESTINY IS A THING TO BE CONTROLLED SO WHAT IS THE RISKAVERSE DEBTSHY COMPANY DOING WITH A NEARLY 1 BILLION AUSTRALIAN DOLLAR US6865 MILLION BET ON TROUBLED WESTPAC BANKING CORP PUTTING MONEY ON A SURE THING SAYS JOHN MORSCHEL MANAGING DIRECTOR OF THE PROPERTY AND FINANCIAL SERVICES CONCERN THERE ARE ENORMOUS OPPORTUNITIES IN WESTPAC HE SAYS IN AN INTERVIEW NOTING WHAT HAS ALREADY HAPPENED AT A HANDFUL OF ONCEAILING US BANKS AND PEOPLE JUST CANNOT ACCEPT THE FACT THAT WE'RE IN THERE FOR THAT REASON HE ADDS REFERRING TO MARKET BEFUDDLEMENT OVER THE INVESTMENT I MEAN THAT'S THE ENTIRE REASON WE'RE IN THERE IN LATE MAY WESTPAC DIRECTORS GAVE LEND LEASE THE GREEN LIGHT TO LIFT ITS STAKE TO 15 IN AUSTRALIA'S OLDEST AND ONE OF ITS BIGGEST BANKS IT ALSO WON TWO SEATS ON WESTPAC'S 13MEMBER BOARD IN EARLY MAY LEND LEASE STARTLED INVESTORS BY AGREEING TO BUY A 10 STAKE FROM AUSTRALIAN BUSINESSMAN KERRY PACKER RAISING ITS OVERALL WESTPAC HOLDING TO 12 LEND LEASE OFFICIALS HAVEN'T SPECIFIED WHERE THEY INTEND TO GET THE REMAINING 3 ALL TOLD MR MORSCHEL ESTIMATES THAT LEND LEASE WILL HAVE TO SPEND A800 MILLION TO A900 MILLION FOR ITS 15 STAKETHE MOST IT CAN OWN IN A BANK UNDER AUSTRALIAN LAWS THAT'S NO SMALL BITE FOR A COMPANY VALUED ON THE AUSTRALIAN STOCK EXCHANGE AT ABOUT A3 BILLION A CASE PERHAPS OF UNCHARACTERISTIC HASTE NOT A CHANCE SAY LEND LEASE INSIDERS WHO MAINTAIN THAT THEY HAVE TRAINED A COLD EYE ON WESTPAC AND THE AUSTRALIAN BANKING SECTOR FOR AT LEAST A YEAR WE DON'T DO THINGS OVERNIGHT MR MORSCHEL ADDS AND NEVER WITHOUT SEEKING A SECOND OPINION FROM ADVISERS THAT DON'T COME CHEAP AMONG THOSE CALLED IN ON WESTPAC WAS US INVESTMENT BANK GOLDMAN SACHS & CO WHICH CONFIRMED OUR GUT FEELING HE SAYS INDEED LEND LEASE HAILED WESTPAC'S LATEST PERFORMANCE AS A CLEAR INDICATION THAT THE BANK'S FORTUNES ARE TURNING LATE LAST MONTH WESTPAC ANNOUNCED A LOSS OF A2046 MILLION FOR THE FISCAL FIRST HALF ENDED MARCH 31 NARROWER THAN THE YEAREARLIER LOSS OF A167 BILLION STILL INVESTORS ARE UNNERVED SINCE LEND LEASE ANNOUNCED ITS SURPRISE FORAY INTO WESTPAC THE PRICE OF ITS SHARES HAS SLIPPED 3 TO A1436 EACH WHILE THE OVERALL STOCK MARKET HAS FIRMED 3 WITH A 15 HOLDING LEND LEASE WOULD BE SET TO EQUAL THE AUSTRALIAN MUTUAL PROVIDENT SOCIETY AS WESTPAC'S BIGGEST SHAREHOLDER BUT A MINORITY SHAREHOLDER NONETHELESS AND THAT HAS ANALYSTS SCRATCHING THEIR HEADS THEY WORRY THAT IT PITS LEND LEASE AGAINST A MAJOR COMPETITOR AMP AND THAT LEND LEASE WHICH USUALLY PREFERS TO OWN 100 OF ITS VENTURES IS STUCK IN A MINORITY POSITION LEAVING THE DESTINY OF ITS INVESTMENT IN SOMEONE ELSE'S HANDS IF YOU COULD SEE A CLEAR STRATEGY OR HOW THEY COULD FORCE THE PACE OF OVERHAULING WESTPAC IT WOULD BE DIFFERENT BUT YOU CAN'T SAYS ROB MCWILLIAMS WHO TRACKS LEND LEASE FOR BROKERAGE FIRM MCINTOSH & CO CONSEQUENTLY MR MCWILLIAMS SAYS THERE'S AN ELEMENT OF UNCERTAINTY WHICH ISN'T NORMALLY PRESENT AT LEND LEASE AND HE'S TELLING HIS CLIENTS TO LIGHTEN LEND LEASE'S WEIGHTING IN THEIR PORTFOLIOS FOR ITS PART LEND LEASE HAS SUGGESTED THAT IT MIGHT FORGE SOME BUSINESS LINKS WITH WESTPAC IN CERTAIN AREAS AND PERHAPS ASSIST WITH THE BANK'S PROBLEMATIC PROPERTYLOAN PORTFOLIO ONE PERSON FAMILIAR WITH THE COMPANY DESCRIBES THE CORPORATE CULTURE AT LEND LEASE AS WOMBTOTOMB IT ALL GOES BACK TO THE COMPANY'S FOUNDER A FLINTY DUTCHMAN NAMED DICK DUSSELDORP WHO CAME TO AUSTRALIA IN THE EARLY 1950S TO WORK FOR A CONSTRUCTION COMPANY AND FORMED LEND LEASE AS A PUBLICLY TRADED CONCERN IN 1958 MR DUSSELDORP DIDN'T PLUG INTO THE CORPORATE NETWORK IN AUSTRALIA AND DISCOURAGED HIS EXECUTIVES FROM ACTIVITIES SUCH AS SERVING AS DIRECTORS OF OTHER COMPANIES CONSEQUENTLY SAYS A SYDNEY INVESTMENT BANKER YOU WERE TOTALLY A LEND LEASE MAN THERE ARE FEW LAYERS OF MANAGEMENT AND THE COMPANY HAS A REPUTATION FOR PAYING ITS MANAGERS WELL WHILE DEMANDING A LOT IN RETURN EXECUTIVES FREQUENTLY ARE SHIFTED AMONG JOBS AND EVEN THRUST INTO LESSER POSITIONS WHICH THEY ACCEPT SAYS A FORMER LEND LEASE EMPLOYEE IT'S A VERY COMPETITIVE CULTURE INTERNALLY HE ADDS THE UPSHOT ONE OBSERVER SAYS IS THAT IT IS ACTUALLY A FAIRLY BULLYING CULTURE THAT BREEDS A LOT OF YES MEN WITHIN THE ORGANIZATION THE COMPANY'S CORPORATE TRACK RECORD ALSO HAS BRED AN AIR OF ARROGANCE AMONG EXECUTIVES PEOPLE WHO KNOW THE COMPANY SAY ON A STAFF LEVEL THOUGH LEND LEASE MAINTAINS ENVIABLE EMPLOYEE RELATIONS PARTLY BECAUSE OF INNOVATIVE PROGRAMS SUCH AS CHILD CARE ACTIVE PROMOTION OF WOMEN AND EMPLOYEE SHAREOWNERSHIP PLANS THAT HAVE PUT ABOUT 20 OF THE COMPANY IN THE SAFE HANDS OF ITS WORKERS FROM ITS CONSTRUCTION ROOTS LEND LEASE BRANCHED INTO FINANCIAL SERVICES WHEN IT LAUNCHED A LISTED PROPERTY TRUST IN THE EARLY1970S INTO WHICH THE COMPANY SELLS DEVELOPED PROPERTIES THAT GETS ASSETS OFF LEND LEASE'S BALANCE SHEET A STRATEGY THAT HAS HELPED THE COMPANY SURVIVE PROPERTYMARKET DOWNTURNS THAT HAVE CLAIMED SOME OF ITS COMPETITORS STILL SOME ANALYSTS WORRY THAT SUCH TRANSACTIONS ARE FRAUGHT WITH RISK BECAUSE THEY RAISE A PERCEPTION OF CONFLICT OF INTEREST THE COMPANY ARGUES THAT TRANSACTIONS ARE DONE ON AN ARM'SLENGTH BASIS IRONICALLY IT WAS LESS A CASE OF CALCULATED DIVERSIFICATION THAN ONE OF HAPPENSTANCE THAT GOT LEND LEASE DEEPER INTO FINANCIAL SERVICES IN THE EARLY 1980S NEW ZEALAND CORPORATE RAIDER SIR RONALD BRIERLEY WAS STALKING AUSTRALIAN LIFE INSURER MLC LTD THE INSURANCE COMPANY WAS A FOUNDING SHAREHOLDER OF LEND LEASE AND AT THE TIME HELD 15 OF THE THENPROPERTY CONCERN TO KEEP TABS ON MLC AND TO PROTECT HIS BACKSIDE AS MR MORSCHEL PUTS IT MR DUSSELDORP HAD BUILT A HEFTY CROSSHOLDING IN MLC OUR INITIAL THOUGHT WAS DEFENSIVE WE DIDN'T PARTICULARLY LIKE THE IDEA OF RON BRIERLEY CONTROLLING 15 OF LEND LEASE MR MORSCHEL SAYS AFTER LEND LEASE BUILT ITS MLC STAKE FURTHER AND DID SOME HOMEWORK IT CONCLUDED THAT THE INSURER WAS A GOOD PLAY AND BID SUCCESSFULLY FOR THE COMPANY LEND LEASE'S MANAGEMENT EXPERTISE IS WIDELY CREDITED WITH TURNING THE MORIBUND INSURER AROUND IN THE SHORT TERM MR MORSCHEL SAYS LEND LEASE WILL FOCUS ON WESTPAC BUT ALSO EXPECTS TO EXPAND SOME OF ITS BUSINESSES PRIMARILY IN ASIA TODAY FINANCIAL SERVICES RELATED BUSINESSES ACCOUNT FOR ABOUT TWOTHIRDS OF THE COMPANY'S EARNINGS WITH PROPERTY SERVICES REPRESENTING THE REST OVER THE NEXT FIVE YEARS MR MORSCHEL PREDICTS THAT BASED ON THE MOST OPTIMISTIC SCENARIO THE CONTRIBUTION FROM FINANCIAL SERVICES WON'T EXCEED 80 EXCLUDING ANY DIVIDEND INCOME FROM ITS WESTPAC SHARES 9306040160 930604 REGENT JAKARTA AIMS TO COMPLETE HOTEL AFTER 5YEARSTRUGGLE TOUR GUIDE TOUTS ITS SERVICES BUT GUESTS WON'T FIND STAFF AS OWNER SEEKS INVESTORS BY RICHARD BORSUK STAFF REPORTER OF THE WALL STREET JOURNAL JAKARTA INDONESIA LANGUAGE POSES NO PROBLEM AT THE REGENT JAKARTA ACCORDING TO A STATE TOURISM OFFICE BOOKLET ON INDONESIA'S CONVENTION FACILITIES HOTEL STAFF IT NOTES SPEAK ENGLISH DUTCH JAPANESE FRENCH AND MANDARIN OR THEY WOULD THE TROUBLE IS THE HOTEL HAS NO STAFF INDEED NEARLY FIVE YEARS AFTER CONSTRUCTION OF THE FANCY 400ROOM HOTEL BEGAN COMPLETION REMAINS AT LEAST ONE YEAR AWAY THE OWNER INDONESIA'S KODEL GROUP RAN SHORT OF MONEY BEFORE FINISHING THE PROMINENT 16FLOOR STRUCTURE IN DOWNTOWN JAKARTA THE HOTEL ORIGINALLY WAS SCHEDULED TO OPEN BY EARLY 1991 THEN BY MID1992 WHEN THE TOURISM BOOKLET WAS PRODUCED COMPLETION WORK WHICH SHOULD TAKE ABOUT A YEAR CAN'T START UNTIL KODEL FINDS NEW INVESTORS OR SOMEONE TO BUY THE PROPERTY OUTRIGHT MEANWHILE KODEL AND THE HOLDER OF THE HOTEL'S MANAGEMENT CONTRACT REGENT INTERNATIONAL HOTELS LTD OF HONG KONG HAVE MISSED JAKARTA'S VISITOR BOOM OF THE PAST COUPLE OF YEARS AND THE DELAYED COMPLETION HAS SPAWNED DOUBTS ABOUT WHETHER THE HOTEL EVER WILL OPEN REGENT INTERNATIONAL PRESIDENT WOLF HENGST SAYS HE IS ABSOLUTELY OPTIMISTIC THAT THE PROPERTY WILL OPEN PARTICIPANTS IN THE PROJECT DECLINE TO DISCLOSE FINANCING DETAILS BUT BANKERS SAY INDONESIA'S STATEOWNED BANKS LED BY BANK DAGANG NEGARA BEGAN EXTENDING LARGE LOANS FOR THE HOTEL IN THE LATE 1980S BANKERS BELIEVE THAT REPAYMENTS SHOULD HAVE BEGUN LONG AGO AND SINCE THE HOTEL OBVIOUSLY ISN'T YET GENERATING REVENUE IT IS HARD TO SEE HOW THE LOANS ARE BEING SERVICED BUT IT ISN'T CLEAR IF THE BANKS HAVE CLASSIFIED THE LOANS AS BAD OR DOUBTFUL STATE BANKS SOMETIMES DON'T LABEL SOURED LOANS AS NONPERFORMING FOR YEARS BANKERS ALSO NOTE THAT SUCH LENDERS DON'T STEP IN AND TAKE OVER A TROUBLED PROJECT AS THEY DO IN SOME COUNTRIES BY OBJECTIVE MEASURES THE REGENT'S OWNERS SHOULD BE CARRYING A CRUSHING WEIGHT OF DEBT GIVEN INDONESIA'S HIGH INTEREST RATES WHICH TOPPED 25 IN THE EARLY 1990S BUT PERHAPS DUE TO KODEL'S POLITICAL CONNECTIONS THE WEIGHT APPEARS TO REST MOSTLY ON THE CREDITOR BANKS KODEL IS OWNED BY A CONSORTIUM OF PRIBUMI OR INDIGENOUS INDONESIAN BUSINESSMEN FORMALLY SET UP IN 1979 KODEL SUPPLIES PESTICIDES TO A STATESUBSIDIZED FARM PROGRAM PRIVATELY HELD KODEL ALSO HAS INTERESTS IN OILINDUSTRY EQUIPMENT AND PROPERTY CONSTRUCTION OF THE REGENT BEGAN WHEN INDONESIA WAS ATTRACTING NEW INVESTMENT AND WAS IN NEED OF MORE FIVESTAR HOTEL ROOMS BUT WHILE A LIKELY MARKET WAS THERE KODEL LACKED THE FINANCIAL MUSCLE TO BUILD A HOTEL TO MEET REGENT'S EXACTING STANDARDS DURING A 1990 JAKARTA VISIT REGENT FOUNDER AND THENCHAIRMAN ROBERT BURNS SAID THE HOTEL WAS PROVING TO BE A LITTLE MORE EXPENSIVE THAN WE THOUGHT OVER TIME IT HAS BECOME A LOT MORE EXPENSIVE BANKING SOURCES SAY THE ORIGINAL BUDGET WAS 60 MILLION BUT THAT COST OVERRUNS IN THE EARLY STAGES TOOK THE TOTAL TO 81 MILLION WITH ACCUMULATED INTEREST CHARGES DURING CONSTRUCTION THE COST NOW HAS FAR EXCEEDED 100 MILLION THEY SAY MR SAID SAYS KODEL LIKE MANY INDONESIAN COMPANIES WAS HURT BY THE TIGHT MONEY POLICY THE GOVERNMENT INTRODUCED IN 1990 TO REDUCE INFLATION AND SLOW CREDIT GROWTH LAST YEAR WHILE KODEL CONTINUED TO SEARCH FOR NEW CAPITAL REGENT WAS BOUGHT BY FOUR SEASONS HOTELS & RESORTS LTD A UNIT OF FOUR SEASONS HOTELS INC TORONTO THE HOTELMANAGEMENT COMPANY'S NEW OWNER LIKE ITS PREDECESSOR HAS BEEN EAGER TO GET THE HOTEL FINISHED AND OPENED HOTEL INDUSTRY EXECUTIVES SAY THAT IT COULD STILL TAKE TENS OF MILLIONS OF DOLLARS TO COMPLETE THE HOTEL AND THAT THE LONGER THE DELAY THE HIGHER THE ULTIMATE COST BECAUSE OF REPAIRS THAT MAY BE NEEDED ON WORK ALREADY DONE MEANWHILE OTHER JAKARTA HOTEL PROJECTS HAVE BEEN COMPLETED ASSUMING THE REGENT DOES OPEN THE ADDED SUPPLY MAY HOLD DOWN ITS ROOM RATES IN ANY CASE INDUSTRY SOURCES SAY THE HOTEL WON'T BE ABLE TO CHARGE CLOSE TO WHAT IT MIGHT UNDER AN INDUSTRY RULE OF THUMB THAT ROOMS SHOULD RENT AT ONETHOUSANDTH OF A PROPERTY'S COST IF THE REGENT'S TOTAL COST COMES TO 150 MILLION THEN THE 400 ROOMS SHOULD GO FOR AN AVERAGE 375 A DAY EACH 9306040159 930604 WHO'S NEWS NETWORK FINANCIAL SERVICES INC NETWORK FINANCIAL SERVICES INC SAN JOSE CALIF JERRY SHERMAN A BOARD MEMBER OF THIS FINANCIAL SERVICES CONCERN WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER MR SHERMAN 64 YEARS OLD SUCCEEDS ERWIN LENOWITZ WHO RESIGNED BUT REMAINS A DIRECTOR AND CONSULTANT FOR THE COMPANY 9306040158 930604 CANADIAN FIRMS RUN AT 787 OF CAPACITY OTTAWA CANADIAN INDUSTRY OPERATED AT 787 OF CAPACITY IN THE FIRST THREE MONTHS OF THIS YEAR UP FROM 775 IN THE PREVIOUS QUARTER STATISTICS CANADA A GOVERNMENT AGENCY SAID THE JANUARYMARCH PERIOD WAS THE THIRD CONSECUTIVE QUARTER TO SHOW AN INCREASE IN CAPACITY USE BY INDUSTRY THE LOGGING AND FORESTRY INDUSTRY SHOWED ONE OF THE BIGGEST INCREASES OPERATING AT 974 OF CAPACITY IN THE FIRST QUARTER UP FROM 882 IN THE PREVIOUS THREE MONTHS 9306040157 930604 BUSINESS BRIEFS GOLDOME CORP SOLD GOLDOME INDUSTRIAL CREDIT CORP TO THE UNIT'S PRESIDENT HARVEY STARR AND TWO FLORIDA INVESTORS TERMS WEREN'T DISCLOSED COMPUTER SCIENCES CORP WAS AWARDED A 50 MILLION 52MONTH CONTRACT TO PROCESS HEALTH CLAIMS AND DISABILITY BENEFITS FOR THE FEDERAL BLACK LUNG PROGRAM ACCLAIM ENTERTAINMENT INC ESTABLISHED A SUBSIDIARY FOR SALES AND DISTRIBUTION OF ITS VIDEOGAME SOFTWARE COLTEC INDUSTRIES INC'S WALBAR METALS UNIT HAS BEGUN BUILDING A MANUFACTURING FACILITY IN GREENWOOD SC STAFF BUILDERS INC REACHED AN AGREEMENT IN PRINCIPLE TO ACQUIRE THE OPERATIONS OF ALBERT GALLATIN VISITING NURSE ASSOCIATION INC TERMS WEREN'T DISCLOSED RTZ CORP PLC'S WHOLLY OWNED US SUBSIDIARY KENNECOTT CORP COMPLETED ITS PREVIOUSLY ANNOUNCED ACQUISITION OF NERCO INC FOR 470 MILLION AND ASSUMPTION OF 692 MILLION IN DEBT 9306040156 930604 TECHNOLOGY HOFFMANNLA ROCHE KODAK AND CHIRON SET ACCORD IN PATENT RIFT ROCHESTER NY EASTMAN KODAK CO HOFFMANNLA ROCHE INC AND CHIRON CORP SAID THEY REACHED AN AGREEMENT CONCERNING RIGHTS TO POLYMERASE CHAIN REACTION TECHNOLOGY IN INVITRO DIAGNOSTICS THE DEVELOPMENT ENDS A DISPUTE AMONG THE THREE COMPANIES RELATED TO OWNERSHIP AND RIGHTS UNDER POLYMERASE CHAIN REACTION PCR PATENTS ROCHE ACQUIRED THE TECHNOLOGY FROM CETUS CORP IN 1991 THE YEAR CHIRON ACQUIRED CETUS THE SETTLEMENT CLEARS THE WAY FOR KODAK AND ROCHE TO MARKET DIAGNOSTIC PRODUCTS USING THE PCR PROCESS CONTINUE DEVELOPMENT PROGRAMS AND MARKET NEW PCR PRODUCTS THE PROCESS ALLOWS VERY SMALL QUANTITIES OF DNA TO BE REPRODUCED INTO QUANTITIES LARGE ENOUGH TO BE DETECTED AND INTERPRETED AND SHOWS PROMISE IN THE EARLY DETECTION OF CANCER INFECTIOUS AND GENETIC DISEASES THE COMPANIES SAID IT CAN ALSO BE USED IN IDENTIFYING HUMAN TISSUE IN ASSAULT AND PATERNITY DISPUTES AS PART OF THE SETTLEMENT KODAK ACKNOWLEDGES ROCHE AS THE SOLE OWNER OF KEY PATENTS COVERING THE PCR PROCESS AND OTHER DEFINED PATENT PROPERTIES PERTAINING TO PCR 9306040155 930604 WHO'S NEWS RINGER CORP RINGER CORP MINNEAPOLIS JOHN F HETTERICK AND FREDERICK F YANNI JR WERE ELECTED DIRECTORS OF THIS LAWN AND GARDENCARE PRODUCTS FIRM MR HETTERICK 48 YEARS OLD IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ROLLERBLADE INC MR YANNI 50 FOUNDED HEALTH SERVICES MEDICAL CORP OF CENTRAL NEW YORK INC WHERE HE IS PRESIDENT AND CHIEF EXECUTIVE ONE APPOINTMENT FILLS A VACANT SEAT AND THE OTHER INCREASES THE SIZE OF THE BOARD TO EIGHT 9306040154 930604 FINANCING BUSINESS BANISTER INC BANISTER INC TORONTO SAID IT PLANS TO SELL 15 MILLION SPECIAL WARRANTS AT 1460 CANADIAN DOLLARS US1150 EACH FOR TOTAL PROCEEDS OF C219 MILLION US172 MILLION EACH SPECIAL WARRANT IS CONVERTIBLE INTO ONE BANISTER COMMON SHARE BANISTER A TORONTO CONSTRUCTION CONCERN SAID IT WILL USE THE FUNDS FOR OPERATING CAPITAL AND TO REDUCE DEBT THE ISSUE IS SUBJECT TO REGULATORY APPROVAL AND IS EXPECTED TO CLOSE JUNE 24 BANISTER HAS ABOUT SIX MILLION SHARES OUTSTANDING ON THE AMERICAN STOCK EXCHANGE YESTERDAY BANISTER SHARES JUMPED 125 OR 11 TO 1225 9306040153 930604 50OFF STORES' 1STQUARTER LOSS SAN ANTONIO DISCOUNT APPAREL RETAILER 50OFF STORES INC SAID SAMESTORE SALES IN THE FOURWEEK PERIOD ENDED SATURDAY FELL 194 ALSO FOR THE FISCAL FIRST QUARTER ENDED APRIL 30 CONTINUED WOES ALONG THE MEXICO BORDER RESULTED IN A LOSS OF 985000 OR NINE CENTS A SHARE IN THE 1992 FIRST QUARTER 50OFF EARNED 21 MILLION OR 20 CENTS A SHARE SALES IN THE LATEST QUARTER ROSE 12 TO 443 MILLION FROM 395 MILLION THE COMPANY SAID LOWERTHANEXPECTED FIRSTQUARTER SALES RESULTED FROM POOR WEATHER CONDITIONS AND CONTINUED STRICT ENFORCEMENT BY MEXICAN AUTHORITIES OF THAT COUNTRY'S 50 LIMIT ON IMPORTING DUTYFREE PRODUCTS 9306040152 930604 MARKETING & MEDIA DONNELLEY CONSIDERS ONLINE YELLOW PAGES WITH CINCINNATI BELL CHICAGO RR DONNELLEY & SONS CO AND CINCINNATI BELL INC AGREED TO JOINTLY RESEARCH AND CONSIDER PRODUCTION OF AN ELECTRONIC YELLOW PAGES THE PRODUCT WHICH A DONNELLEY SPOKESMAN SAID WOULD BE OFFERED EITHER ON COMPACT DISKS OR AS AN ONLINE SERVICE WOULD PROVIDE SUBSCRIBERS WITH STILLPICTURE CATALOGSTYLE ADVERTISEMENTS AND PRICING INFORMATION AS WELL AS COMPUTERIZED MAPS PROVIDING CUSTOMIZED ROUTES TO ADVERTISERS DONNELLEY THE WORLD'S LARGEST COMMERCIAL PRINTER PRINTS YELLOW PAGES FOR MANY PHONE COMPANIES AND ALSO PRINTS MAGAZINES CATALOGS NEWSPAPER ADVERTISING INSERTS AND BOOKS IN RECENT YEARS THE COMPANY HAS PUSHED INTO ELECTRONIC PUBLISHING THE COMPANY SAID IT EXPECTS USERS TO BE ABLE TO SELECT A PRODUCT FROM YELLOW PAGES CATEGORIES VIEW PICTURES RELATING TO THE PRODUCT GENERATE PRICING INFORMATION AND DIAL INTO AN ONLINE SYSTEM TO ORDER PRODUCTS A PROTOTYPE OF THE PRODUCT WHICH CINCINNATI BELL LABELS AN ELECTRONIC DIRECTMARKETING PLATFORM WILL BE RELEASED THIS FALL THE COMPANY SAID AND WILL BE AIMED AT BUSINESSTOBUSINESS USERS LATE LAST YEAR A BELL ATLANTIC CORP UNIT UNVEILED A MULTIMEDIA ELECTRONIC YELLOW PAGES THAT ALLOWS USERS THROUGH A SPECIAL COMPACT DISK PLAYER TO RETRIEVE VIDEOANDAUDIO ADS STORED ON INTERACTIVE CDS THE DONNELLEYCINCINNATI BELL PRODUCT STILL UNDER DEVELOPMENT WOULD DIFFER FROM THAT FORMAT DONNELLEY'S SPOKESMAN SAID IN THAT IT IS LIKELY TO BE GEARED MORE FOR PC USERS 9306040151 930604 MOODY'S LIFTS RATINGS ON 25 BILLION OF DEBT OF PANHANDLE EASTERN NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT UPGRADED RATINGS ON ABOUT 25 BILLION OF DEBT OF PANHANDLE EASTERN CORP AND ITS SUBSIDIARIES THE UPGRADE IS BASED ON MOODY'S ASSESSMENT THAT THE COMPANY'S OPERATIONS ARE IMPROVING AND ITS DEBT LEVEL WILL CONTINUE TO BE REDUCED PANHANDLE EASTERN AN INTERSTATE NATURAL GAS PIPELINE HOLDING COMPANY LOCATED IN HOUSTON UNLIKE ITS COMPETITORS HAS FEW UNREGULATED ASSETS AND ITS GROWTH STRATEGY IS CONSERVATIVE SAYS MOODY'S RATINGS AFFECTED INCLUDE PANHANDLE EASTERN'S INDUSTRIAL REVENUE BONDS WHOSE RATINGS WILL BE UPGRADED TO BA1 FROM BA2 TEXAS EASTERN TRANSMISSION CORP'S SENIOR UNSECURED DEBT TO BAA2 FROM BAA3 PANHANDLE EASTERN PIPE LINE CO'S SENIOR UNSECURED DEBT TO BAA2 FROM BAA3 AND SHELF REGISTRATION TO PBAA2 FROM PBAA3 AND TEXAS EASTERN'S SENIOR UNSECURED DEBT TO BAA3 FROM BA1 TEXAS EASTERN AND ALGONQUIN GAS TRANSMISSION CO PIPELINE SUBSIDIARIES OF PANHANDLE BOTH HAVE STRONG CASH FLOWS AND AN ASSURED RECOVERY OF THE TRANSITION COSTS IN IMPLEMENTING FEDERAL REGULATORY ENERGY COMMISSION'S ORDER NO 636 RECOVERY OF THE COSTS WILL BE EASIER BECAUSE CUSTOMERS OF THOSE PIPELINES ARE UNDER LONGTERM CONTRACTS SAID THE RATINGS AGENCY ORDER 636 CALLS FOR THE SEPARATION OR UNBUNDLING OF THE VARIOUS NATURAL GAS SERVICES PANHANDLE EASTERN'S DEBT LEVEL STABILIZED IN 1992 AND INTEREST EXPENSE DECLINED MOODY'S EXPECTS PANHANDLE'S DEBT TO DECREASE SIGNIFICANTLY IN 1993 BECAUSE OF WORKING CAPITAL REDUCTIONS FROM ORDER 636 AND A RECENT 205 MILLION EQUITY SALE 9306040150 930604 BANGLADESH BANKER PUSHES NOVEL IDEA LEND TO THE NEEDY NO PAPERWORK NO COLLATERAL EQUAL A LOW DEFAULT RATE FOR BANK FOCUSING ON POOR BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FOR BANKERS WHO GRIPE ABOUT PAPERWORK AND COMPLEX COLLATERAL ARRANGEMENTS MUHAMMAD YUNUS HAS THIS ADVICE MAKE LOANS WITHOUT REQUIRING PAPERWORK OR COLLATERAL MR YUNUS AN ECONOMIST FROM BANGLADESH IS THE FOUNDER OF THE GRAMEEN BANK WHICH MAKES SMALL LOANS TO WOMEN WHO ARE FAR TOO POOR TO GET CREDIT ELSEWHERE THE BANK MAKES ABOUT 20 MILLION IN LOANS A MONTH AND ALL TOLD HAS LENT TO MORE THAN 15 MILLION PEOPLE IN 32000 VILLAGES THE BIGGEST LOAN THE BANK MAKES IS 1200 BUT MOST ARE FAR SMALLER A POPULAR HOUSING LOAN IS 300 DURING A RECENT VISIT TO WASHINGTON TO COLLECT AN AWARD FROM CARE THE INTERNATIONAL RELIEF AGENCY MR YUNUS MADE IT CLEAR THAT HE SEES NOTHING STRANGE ABOUT WEALTHY COUNTRIES USING A BANKING MODEL DEVELOPED IN ONE OF THE WORLD'S POOREST THE RIGHT TO CREDIT SHOULD BE CONSIDERED A HUMAN RIGHT HE SAYS TRADITIONAL BANKS SAY THE MORE MONEY YOU HAVE THE MORE YOU CAN GET' WE SAY EVEN IF YOU HAVE NOTHING YOU CAN BORROW SOMETHING' THE TRUE MEANING OF THE WORD CREDIT IS TRUST MAINSTREAM BANKERS MIGHT SCOFF BUT THEY SHOULD CONSIDER THE GRAMEEN BANK'S REMARKABLY LOW DEFAULT RATE OF 2 BY CONTRAST MR YUNUS SAYS THE DEFAULT RATE AT SOME COMMERCIAL BANKS IN BANGLADESH IS 70 MEANWHILE PRESIDENT CLINTON'S ENTHUSIASM FOR THE YUNUS APPROACH IS UNBRIDLED I THINK MUHAMMAD YUNUS SHOULD BE GIVEN A NOBEL PRIZE HE SAID IN AN INTERVIEW WITH ROLLING STONE LAST YEAR HE MADE ENTERPRISE WORK HE PROMOTED INDEPENDENCE NOT DEPENDENCE GRAMEEN BANK IS SO SUCCESSFUL THAT IT HAS BEEN DUPLICATED THROUGHOUT THE THIRD WORLD ABOUT 100 SOCALLED MICROENTERPRISE FUNDS IN THE US OPERATE ON THE GRAMEEN MODEL SOON MR CLINTON PLANS TO ANNOUNCE A COMMUNITY DEVELOPMENT PLAN THAT WILL HELP FINANCE MORE MICROENTERPRISE FUNDS AND OTHER INSTITUTIONS FOR EXPANDING CREDIT IN POOR URBAN AND RURAL AREAS THE BANK KEEPS ITS PROCEDURES SIMPLE AND USERFRIENDLY PEOPLE SHOULDN'T COME TO THE BANK BANKS SHOULD GO TO THE PEOPLE HE SAYS EXPLAINING THAT GRAMEEN BANK MAKES LOANS IN HOMES AND BUSINESSES IN 32000 VILLAGES IN BANGLADESH WE WORK ON THEIR DOORSTEPS HE MAKES LOANS WITHOUT COLLATERAL OR WRITTEN AGREEMENTS TO GET A LOAN A WOMAN MUST FIND FOUR FRIENDS WHO WILL AGREE TO HELP HER PAY THE LOAN BACK IF NECESSARY INSTEAD OF COLLATERAL THE BANK'S SECURITY IS A GROUP OF FRIENDS WORKING TOGETHER HE EXPLAINS IF ONE WOMAN DEFAULTS ON PRINCIPAL OR INTEREST THE OTHERS IN THE GROUP CAN'T BORROW UNTIL THE LOAN IS REPAID AND OVERALL MR YUNUS FINDS THAT THE RURAL POOR ARE FAIRLY GOOD CREDIT RISKS THE RICH AND THE POWERFUL IF THEY DON'T PAY NOBODY CAN CATCH THEM THEY CAN GET AWAY HE SAYS BUT THE POOR THEY SEE THIS IS THE ONLY OPPORTUNITY THEY'VE GOT 9306040149 930604 VALUE CITY STORES' SALES COLUMBUS OHIO VALUE CITY DEPARTMENT STORES INC SAID SALES FOR THE FOUR WEEKS ENDED MAY 22 INCREASED 04 TO 615 MILLION FROM 613 MILLION A YEAR AGO THE OFFPRICE DEPARTMENT STORE CHAIN SAID COMPARABLESTORE SALES FELL 25 SALES FOR THE 43 WEEKS ENDED MAY 22 ROSE 44 TO 705 MILLION FROM 6754 MILLION COMPARABLESTORE SALES INCREASED 06 FOR THE 43WEEK PERIOD VALUE CITY OPERATES 74 RETAIL STORES IN THE MIDWEST AND EAST 9306040148 930604 ECONOMY NEW JOBLESS CLAIMS EDGED UP LAST WEEK WASHINGTON NEW CLAIMS FOR STATE UNEMPLOYMENT BENEFITS EDGED UP 5000 TO 344000 IN THE WEEK ENDED SATURDAY THE LABOR DEPARTMENT SAID ANALYSTS SAID THE SMALL RISE AFTER A SMALL DROP THE WEEK BEFORE SUGGESTS THAT THE LABOR MARKET IS STAGNANT THE FOURWEEK MOVING AVERAGE OF CLAIMS WHICH IS A BETTER MEASURE OF JOBMARKET CONDITIONS THAN THE WEEKLY FIGURE ROSE JUST 500 FROM THE PREVIOUS WEEK TO 340250 IN THE WEEK ENDED MAY 22 THE BIGGEST CLAIMS INCREASES WERE IN NEW JERSEY MISSISSIPPI AND ALABAMA THE LARGEST DROPS WERE IN CALIFORNIA ILLINOIS AND MICHIGAN EXCEPT FOR INDIVIDUAL STATE TALLIES ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS 9306040147 930604 WHO'S NEWS NEW YORK TIMES SETS MANAGEMENT PANEL AND PROMOTES TWO NEW YORK NEW YORK TIMES CO PROMOTED TWO EXECUTIVES AND NAMED THEM TO A NEWLY FORMED FIVEPERSON MANAGEMENT COMMITTEE TO SERVE UNDER THE CHAIRMAN AND CHIEF EXECUTIVE ARTHUR O SULZBERGER THE MANAGEMENT COMMITTEE INCLUDES LANCE R PRIMIS PRESIDENT AND CHIEF OPERATING OFFICER DAVID L GORHAM SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AND MICHAEL E RYAN SENIOR VICE PRESIDENT FOR LEGAL AFFAIRS SPECIAL PROJECTS AND FORESTPRODUCTS OPERATIONS ALSO ON THE COMMITTEE ARE KATHARINE P DARROW 49 YEARS OLD WHO BECOMES SENIOR VICE PRESIDENT FOR CORPORATE DEVELOPMENT AND GORDON MEDENICA 41 WHO BECOMES VICE PRESIDENT FOR OPERATIONS AND PLANNING MS DARROW PREVIOUSLY WAS VICE PRESIDENT FOR BROADCASTING AND INFORMATION SERVICES SHE WILL CONTINUE TO OVERSEE BROADCASTING AND ADD HUMANRESOURCES RESPONSIBILITIES MR MEDENICA WAS VICE PRESIDENT FOR CORPORATE PLANNING THE COMMITTEE WILL REPORT FOR OPERATIONS TO MR PRIMIS AND FOR PLANNING AND DEVELOPMENT TO MESSRS PRIMIS AND SULZBERGER SEPARATELY JAMES A CUTIE 42 WAS NAMED PRESIDENT OF THE COMPANY'S INFORMATIONSERVICES GROUP HE PREVIOUSLY WAS SENIOR VICE PRESIDENT OF MARKETING FOR THE COMPANY'S FLAGSHIP NEW YORK TIMES NEWSPAPER 9306040146 930604 SAMSUNG ELECTRONICS BEGINS PRODUCTION OF 16MEGA CHIPS SPECIAL TO THE WALL STREET JOURNAL SEOUL SOUTH KOREA SAMSUNG ELECTRONICS CO SOUTH KOREA'S LARGEST ELECTRONICS COMPANY SAID IT STARTED MASS PRODUCTION OF 16MEGA DYNAMIC RANDOM ACCESS MEMORY CHIPS PRODUCTION OF THE 16MEGA DRAMS USES EIGHTINCH WAFERS WHICH COST LESS AND ARE MORE PRODUCTIVE THAN THE PREVIOUS ONES USING SIXINCH WAFERS SAID KANG JIN KOO PRESIDENT SAMSUNG HAS INVESTED 500 BILLION WON 6225 MILLION DURING THE PAST YEAR TO COMPLETE THE PLANT WHICH IS CAPABLE OF PRODUCING 3 MILLION 16MEGA DRAMS A MONTH SAMSUNG PLANS TO CHURN OUT 300000 16MEGA DRAMS IN THE INITIAL MONTHS WITH A GOAL OF EXPANDING OUTPUT TO 700000 UNITS BY THE END OF THIS YEAR A 16MEGA DRAM WHICH IS CAPABLE OF STORING THE EQUIVALENT OF 128 NEWSPAPER PAGES OF INFORMATION IS USED IN A WIDE RANGE OF ELECTRONICS PRODUCTS SUCH AS HIGHDEFINITION TVS WORKSTATIONS AND SUPERCOMPUTERS MANY BUSINESS ANALYSTS EXPECT THE 16MEGA MEMORY CHIPS TO GROW INTO A MARKET WORTH 135 BILLION BY 1997 REPLACING FOURMEGA DRAMS AS THE MAINSTAY PRODUCT IN THE GLOBAL MEMORY CHIP MARKET 9306040145 930604 SWISS SMH THINKS EARNINGS WILL SURGE IN '93 ANALYSTS SHARE OPTIMISM FOR SWATCH MAKER WARN OF SOME PROFITTAKING BY MARGARET STUDER SPECIAL TO THE THE WALL STREET JOURNAL BERN SWITZERLAND'S WATCHMAKING GIANT SMH SWISS CORPORATIONS FOR MICROELECTRONICS & WATCHMAKING INDUSTRIES LTD SHOULD RECORD ANOTHER EARNINGS SURGE IN 1993 FOLLOWING A 64 JUMP IN NET INCOME LAST YEAR SAID CHAIRMAN NICOLAS G HAYEK PROFITS WILL BE CONSIDERABLY BETTER IN 1993 SAID AN UPBEAT MR HAYEK AT THE COMPANY'S ANNUAL NEWS CONFERENCE IN 1992 SMH NET PROFIT ROSE TO 413 MILLION SWISS FRANCS 290 MILLION FROM 252 MILLION FRANCS THE YEAR BEFORE IN THE SAME PERIOD SALES WERE UP 20 TO 28 BILLION FRANCS FROM 24 BILLION FRANCS MR HAYEK CONFIRMED A PREVIOUS STATEMENT THAT SALES IN THE FIRST FOUR MONTHS OF THE CURRENT YEAR ROSE BY 1519 HE ADDED PROFIT WAS SEVERAL TIMES THAT ADDITIONAL FIGURES WERE NOT PROVIDED A NUMBER OF ANALYSTS SHARE MR HAYEK'S OPTIMISM IN RECENT MONTHS A WAVE OF FINANCIAL REPORTS FROM BANKS HAVE RECOMMENDED BUYING SMH STOCK FORECASTING NET PROFIT INCREASES UP TO 20 THIS YEAR SWISS BANK CORP AND BANK JULIUS BAER ARE AMONG THE BANKS THAT HAVE CLEAR BUYS ON SMH STOCK SMH IS A CORE HOLDING IN A GROWTHORIENTED PORTFOLIO OF SWISS SHARES SUGGESTS SBC ANALYST ROMAN JERMANN EXPLAINS SWISS VOLKSBANK ANALYST WOLFGANG STRUB THE ARGUMENT FOR SMH IS ITS UNASSAILABLE POSITION IN TOP BRAND NAMES WHEREAS BRAND NAME COMPANIES OFTEN TEND TO SIT ON THEIR BRANDS SMH IS STRONGLY INNOVATIVE SMH PRODUCES SWATCH THE POPULAR PRICED HIGHTECHNOLOGY WATCH THAT HAS BECOME THE WORLD'S FASTESTSELLING TIMEPIECE IN THE MORE EXPENSIVE RANGE SMH HAS BLANCPAIN OMEGA LONGINES AND RADO OTHER BRANDS INCLUDE TISSOT CERTINA AND THE CHILDREN'S WATCH FLIK FLAK SWATCH CONTINUES TO GROW AT A PACE REQUIRING A SUBSTANTIAL INCREASE IN PRODUCTION CAPACITY SAYS MR HAYEK IN 1992 PRODUCTION CAPACITY INCREASED BY 40 A FURTHER 30 RISE IS EXPECTED IN THE CURRENT YEAR HE ADDS AN ALARM SWATCH WHICH AWAKENS SLEEPERS WITH A MUSICAL TUNE WILL BE INTRODUCED IN EUROPEAN MARKETS LATER THIS YEAR SAYS MR HAYEK DESPITE THE GENERALLY FAVORABLE OUTLOOK SOME ANALYSTS WARN THAT SMH STOCK HAS SURGED SO MUCH RECENTLY THAT THERE COULD BE PROFITTAKING OVER THE COMING MONTHS AN ANALYST AT LONDONBASED ENSKILDA RESEARCH ESTIMATES THAT SMH REGISTERED SHARES HAVE OUTPERFORMED THE SWISS STOCK MARKET BY AROUND 57 OVER THE LAST YEAR THE FUNDAMENTALS ARE GOOD AT SMH AND THE STOCK STILL LOOKS CHEAP BUT YOU HAVE A TECHNICAL SITUATION WHERE INVESTORS HAVE MADE SO MUCH PROFIT THEY MAY DECIDE TO TAKE SOME OF IT SAYS THE ENSKILDA ANALYST SWISS VOLKSBANK ANALYST FREDERICK HASSLAUER SUGGESTS SMH SHOULD BE BOUGHT ON WEAKNESS ON THURSDAY SMH REGISTERED SHARES GAINED 30 FRANCS ON THE ZURICH STOCK EXCHANGE TO CLOSE AT 2010 FRANCS A ZURICH BROKER SAID SMH SHARES WERE SOUGHT AFTER PUBLICATION OF THE COMPANY'S FAVORABLE OUTLOOK MR HAYEK PROCLAIMS THE TARGET IS TO REACH CONSOLIDATED SALES OF 55 BILLION FRANCS WITHIN THE NEXT FIVE YEARS TO ACHIEVE THIS GOAL SMH'S CASH RESOURCES WOULD BE USED PRIMARILY ON NEW PRODUCTS AND NEW FACTORIES HE SAYS EXPECTED RISE IN CASH SMH CASH RESOURCES SHOULD RISE FROM 800 MILLION FRANCS TO ONE BILLION FRANCS BY THE END OF THIS YEAR MR HAYEK ADDS OF HIS PLANS FOR A SWATCH CAR MR HAYEK SAYS THE PROJECT IS ON TARGET SINCE VOLKSWAGEN AG PULLED OUT OF THE SWATCHCAR JOINT VENTURE EARLIER THIS YEAR PROGRESS HAS GROWN FASTER WE DON'T HAVE TO DISCUSS EVERY SCREW HE SAYS DECISIONS CAN BE MADE 10 TIMES FASTER BY THE END OF THE YEAR SMH WILL HAVE ANOTHER AUTOMOBILE MANUFACTURER AS PARTNER TWO COMPANIES ARE CONDUCTING TALKS WITH SMH MR HAYEK SAYS HOWEVER HE SAYS HE IS PROCEEDING CAUTIOUSLY WE DON'T WANT A PARTNER WHO QUESTIONS EVERYTHING ACHIEVED SO FAR 9306040144 930604 WHO'S NEWS LIMITED INC NAMES TWO OF ITS EXECUTIVES TO BE VICE CHAIRMAN COLUMBUS OHIO RETAILER LIMITED INC PROMOTED TWO OF ITS EXECUTIVES MICHAEL WEISS AND KENNETH B GILMAN TO VICE CHAIRMEN THE COMPANY PREVIOUSLY HAD A VICE CHAIRMAN THOMAS G HOPKINS WHO RETIRED LAST YEAR AND LIMITED HADN'T FILLED THE POSITION MR WEISS 52 YEARS OLD WAS FORMERLY PRESIDENT OF EXPRESS THE COMPANY'S LARGEST AND FASTESTGROWING DIVISION WHICH NOW HAS 640 STORES AND SALES OF ABOUT 13 BILLION AS VICE CHAIRMAN MR WEISS WILL NOW OVERSEE ABOUT 40 OF THE COMPANY'S BUSINESSES ADDING TO HIS CHARGE THE COMPANY'S TROUBLED FLAGSHIP DIVISION LIMITED STORES AND HENRI BENDEL THE OTHER LIMITED DIVISIONS WILL CONTINUE TO REPORT TO LESLIE WEXNER LIMITED'S CHAIRMAN AND CHIEF EXECUTIVE ANALYSTS VIEWED MR WEISS'S APPOINTMENT AS A POSITIVE SIGN NOTING THAT HE IS BOTH A TALENTED MERCHANT AND SKILLED LEADER HAVING DEVELOPED A NUMBER OF THE COMPANY'S TOP MIDDLE MANAGERS THE PROMOTION OF WEISS IS TELLING US THAT LIMITED IS DEAD SERIOUS ABOUT TRANSPOSING SOME OF THE STRENGTHS AT EXPRESS TO THE OTHER DIVISIONS IN PARTICULAR THE LIMITED DIVISION SAID JEFFREY EDELMAN AN ANALYST AT CJ LAWRENCE INC MR WEISS WAS ALSO NAMED A DIRECTOR INCREASING LIMITED'S BOARD TO 13 MEMBERS AT EXPRESS MR WEISS WILL BE SUCCEEDED BY PAMELA MCCONATHY 37 WHO WAS PREVIOUSLY EXECUTIVE VICE PRESIDENT AND GENERAL MERCHANDISE MANAGER AT EXPRESS MR GILMAN 46 WHO JOINED THE COMPANY IN 1976 WAS PREVIOUSLY EXECUTIVE VICE PRESIDENT AND WILL RETAIN HIS POSTS AS CHIEF FINANCIAL OFFICER AND DIRECTOR